Hospital Monopolies Drive Up the Cost of Care for Consumers
By Consumers for Quality Care, on October 20, 2022
![Hospital Monopolies Drive Up the Cost of Care for Consumers](https://consumers4qualitycare.org/wp-content/uploads/2017/06/2010_SMH_Main_Facility-860x400.jpg)
The University of Pittsburg Medical Center hospital system, or UPMC, reported revenue of $16 billion last year. The system, made up of 40 hospitals in the region, is just one example of how health care consolidation can lead to not only a lower quality of care, but higher prices for consumers, according to a report from Washington Monthly.
Hospitals accounted for 31 percent, or $1.2 trillion, of money spend on medical care last year in the U.S., up from $882 billion a decade ago. While hospitals continue to rake in massive profits, more than 100 million Americans currently find themselves in medical debt.
Fifty years ago, most hospitals were stand-alone institutions, but now, more than half of all hospitals are part of a regional system. Despite the arguments that hospital mergers bring down costs and lead to higher-quality care, neither has been found to be true.
CQC urges lawmakers and regulators to further scrutinize hospital mergers to ensure a competitive health care sector that gives consumers lower-cost, higher-quality health care. Furthermore, hospitals – especially nonprofit hospitals – must not be allowed to turn massive profits while issuing exorbitant medical bills to consumers, pushing more and more people into debt.