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Concentrated Health Care Markets

Posted on July 20, 2022 by John C. Goodman

Michael Cannon at Cato writes:

By 2017, in most markets, a single hospital system had more than a 50 percent market share of discharges. In 2016, markets for specialist physicians exhibited what federal antitrust authorities consider a high degree of concentration in 65 percent of metropolitan areas. Markets for primary‐care physicians exhibited high concentration in 39 percent of metropolitan areas…. In 2016, 57 percent of health insurance markets exhibited high concentration; in 2018, 75 percent did.

Why that’s bad: the economics literature finds that concentration increases prices and reduces quality.

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For many years, our health care blog was the only free enterprise health policy blog on the internet. Then, when the NCPA closed its doors, the health blog stopped as well.

During this five-year hiatus no one else has come forward to claim the space. So, my colleagues and I have decided to restart the blog in connection with the Goodman Institute. We invite you and others to use this forum to share your views.

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