Hospital prices have risen almost fourfold since 2000, far more than any other major economic sector. The increase in prices comes after decades of consolidation. Nearly half of medical centers have become part of bigger chains since 2000, largely erasing competition in many cities and metro areas.
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The White House Council of Economic Advisers released the report last week, but almost no one aside from healthcare trade reporters has noticed or written about it.
Health insurance company executives are so despised they risk being gunned down. But hospitals continue mostly to escape blame for their role in American healthcare’s exorbitant costs. The report suggests that in many cities and states, hospitals are far more important to high prices — and increasingly dominant over private insurers.
After mergers, hospital chains quickly raise prices, research has shown.