Health Care Markets

This analysis examines the competitiveness of markets for hospital care based on the share of metropolitan areas controlled by a small number of independent hospitals or health systems and other measures. It finds that nearly half of metropolitan areas across the country had only one or two hospitals or health systems providing general inpatient hospital care in 2022.

As policymakers and regulators pay more attention to consolidation in health care provider markets, this brief examines and summarizes the evidence about consolidation, including recent trends, the impact on prices and quality, and proposals to address consolidation and increase competition.

This brief explains the role and implications of cross-market mergers between hospitals and health systems that operate in different regions and describes the approaches that government antitrust agencies have taken in reviewing these types of transactions.

This brief explains the role of federal and state antitrust agencies in challenging anticompetitive practices among hospitals and other health care providers, including the legal authority of federal and state agencies, the role that they play in enforcing antitrust laws, and proposed options for strengthening their authority.

This brief reviews what we know about the impact of provider consolidation on health care prices and quality and finds that consolidation leads to higher prices with no compelling evidence of commensurate quality improvements.