Market Consolidation and the Ban on Physician Owned Hospitals

Market consolidation in the American health care system has occurred over the last couple of decades. From 1998 to 2012, there were a total of 1,113 hospital mergers and 2,777 acquisitions. Using the influence of the Medicare program, the federal government has favored incumbent general hospitals over their smaller competitors. At the state level, anti-competitive policy including certificate-of-need (CON) laws prevent the construction or expansion of new local hospitals. Passed in 2010, Obamacare has only accelerated the growth of market consolidation in our health care system by discouraging robust competition among providers, including a ban on physician-owned hospitals (POHs).

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Market Consolidation and the Ban on Physician Owned Hospitals

Background: Market consolidation in the American health care system has occurred over the last couple of decades. From 1998 to 2012, there were a total…

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