The Extinction of Private Practices Is Resulting In Rising Health Care Costs
As the health care sector wrestles with an epidemic of consolidation dominated by hospitals (and their parent companies), and large medical groups backed by billion dollar private equity firms, one concern remains paramount—without robust competition, prices for consumers will continue to rise. Even health care, which is resistant to most free market principles, is experiencing rampant inflation fueled by a shrinking number of regional players. With less competition, these big healthcare groups are able to negotiate higher rates with insurance companies resulting in higher costs without additional value. Private Practices Cannot Compete At the heart of the matter is a business environment that is strangling small and mid-size provider operations. These behemoth groups and hospitals are able to negotiate significant rates with the insurance companies that are sometimes 3-4x the…