A
new
report by a coalition of labor and consumer advocacy groups including the
CT Health Policy Project,
calls
for caution and more study before the state approves pending hospital
consolidations. Concentration in CT’s health care system is being driven by
new, untested shared savings payment reform models being adopted in Medicare,
Medicaid and private insurance plans. CT already suffers from a highly
concentrated hospital market, with the fourth highest health care costs in the
US but lagging quality. Twenty years ago all CT hospitals were independent, but
if pending mergers across the state are approved, 80% of inpatients will be
cared for in large, multi-hospital systems. The report highlights Yale-New Haven’s
proposed acquisition of L&M’s hospital system and “slow motion” takeover of
Milford Hospital facilities and functions. This consolidation, if approved,
would further consolidate the market in CT’s currently most concentrated
market. Studies find that consolidations in already concentrated markets can
raise prices by 20%. The authors urge policymakers to study the impact of
current mergers, determine the impact on prices, access and quality of care, and
develop protections to ensure value and protect consumers.
