Much of my skepticism, as well.
Much of my skepticism, as well.
The merging companies have claimed huge cost savings will flow to consumers from these deals, but I'm skeptical. Research suggests costs can actually end up rising in some cases of health-care consolidation. Less competition means more pricing power for the companies that remain. Markets with more insurers have lower premiums, while prices rise when hospitals buy physician groups. Though these are vertical deals, they will add to the market power of major players in already heavily consolidated industries, which seems like a recipe for monopolistic behavior.
https://www.bloombergquint.com/business/2018/03/26/amazon-s-health-care-threat-is-already-reshaping-the-industry
https://www.bloombergquint.com/business/2018/03/26/amazon-s-health-care-threat-is-already-reshaping-the-industry
The merging companies have claimed huge cost savings will flow to consumers from these deals, but I'm skeptical. Research suggests costs can actually end up rising in some cases of health-care consolidation. Less competition means more pricing power for the companies that remain. Markets with more insurers have lower premiums, while prices rise when hospitals buy physician groups. Though these are vertical deals, they will add to the market power of major players in already heavily consolidated industries, which seems like a recipe for monopolistic behavior.
https://www.bloombergquint.com/business/2018/03/26/amazon-s-health-care-threat-is-already-reshaping-the-industry
https://www.bloombergquint.com/business/2018/03/26/amazon-s-health-care-threat-is-already-reshaping-the-industry
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