The Impact of Provider Consolidation on Rising Costs

Interesting article on Health Affairs Blog. We have focused on several reasons why health care costs are rising, including technology and changing standards of care, an older and relatively healthier population, and inefficiencies/waste. One thing we almost never talk about is the impact that provider consolidation has on unit price of doctors and hospitals. As insurers and hospitals are continually merging in light of health reform and the impending health exchanges, it will be important to keep an eye on how these consolidations impact rates--particularly for the private insurance market.