Addressing Pricing Power in Integrated Delivery: The Limits of Antitrust

Journal Article

Addressing Pricing Power in Integrated Delivery: The Limits of Antitrust

June 29, 2015

Abstract

Prices are the major driver of why the United States spends so much more on health care than other countries do. The pricing power that hospitals have garnered recently has resulted from consolidated delivery systems and concentrated markets. New payment and delivery models being pioneered in Medicare, especially those built around accountable care organizations (ACOs), offer an opportunity to reduce pricing power, but only if they are implemented with a clear eye on the impact on prices in commercial insurance markets. This article proposes approaches that public and private payers should consider to complement the role of antitrust to assure that ACOs will actually help control costs in commercial markets as well as in Medicare and Medicaid.

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Research Area: 

Centers

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