Recent bipartisan proposals to regulate hospitals in highly concentrated markets demonstrate an appetite to curb the exercise of hospital market power.
Government regulation may be needed to counter the price pressure created by hospitals in concentrated markets, according to health care experts.
Federal and state agencies are taking a close look at market concentration as part of an ongoing effort to address high and rising hospital prices. Authorities also are challenging practices such as anti-tiering and anti-steering provisions in contracts, which heighten the bargaining leverage of dominant health care systems. More recently, policymakers and think tanks have introduced proposals to regulate prices directly in concentrated provider markets.
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