Hospital Market Consolidation

Trends and Consequences

Published in: Expert voices, Nov. 2009, p. [1-2]

Posted on RAND.org on December 31, 2008

by William B. Vogt

Read More

Access further information on this document at www.nihcm.org

This article was published outside of RAND. The full text of the article can be found at the link above.

The weight of the evidence indicates that hospital prices increase following hospital consolidation, sometimes by very significant amounts. While modest cost savings can be achieved, especially when physical facilities and clinical services are consolidated, these savings have not generally been passed on to payers and consumers. Evidence on quality is mixed, but some studies suggest that hospital consolidation leads to poorer outcomes. Within this context, the Federal Trade Commission and the Department of Justice are now revisiting their long-standing guidelines for horizontal mergers.

This report is part of the RAND Corporation external publication series. Many RAND studies are published in peer-reviewed scholarly journals, as chapters in commercial books, or as documents published by other organizations.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.