Paul KeckleyDec 16. 2015 9:53amPaul Keckley20151216/article/20151215/NEWS/151219906
These findings are not a surprise. Competition and elimination of over-treatment that's medically unnecessary are keys to lower cost. But there's are two other factors:in Preference-driven demand by consumers, and drug costs which vary widely. It's a timely discussion.
DAVID JANOTHADec 16. 2015 9:51amDAVID JANOTHA20151216/article/20151215/NEWS/151219906
There is always a significant gap between prices and actual payments. Is there a major difference on the payment side when their is more competition? Also, what is the impact of competition on cost and quality. Having 4 or more providers vying for the same cases means less cases per provider and therefore less experience with those cases which has the potential to decrease overall quality. It could also lead to lots of underutilized resources which also increases costs. Taking that a step further when there are 4 or more hospitals how are they each faring financially? I suspect the reason for consolidation has more to do with increasing utilization at the surviving provider and therefore lowering costs than traditional competition in other industries that tends to lead to lower prices and faster development timelines.
DONALD SAELINGERDec 16. 2015 8:45amDONALD SAELINGER20151216/article/20151215/NEWS/151219906
Given that healthcare is local and given that healthcare is not a perfect market because of moral hazard and adverse selection, why has the FTC allowed mergers in markets where competetion is minimal or non-existant?
3 Readers' Comments
These findings are not a surprise. Competition and elimination of over-treatment that's medically unnecessary are keys to lower cost. But there's are two other factors:in Preference-driven demand by consumers, and drug costs which vary widely. It's a timely discussion.
There is always a significant gap between prices and actual payments. Is there a major difference on the payment side when their is more competition? Also, what is the impact of competition on cost and quality. Having 4 or more providers vying for the same cases means less cases per provider and therefore less experience with those cases which has the potential to decrease overall quality. It could also lead to lots of underutilized resources which also increases costs. Taking that a step further when there are 4 or more hospitals how are they each faring financially? I suspect the reason for consolidation has more to do with increasing utilization at the surviving provider and therefore lowering costs than traditional competition in other industries that tends to lead to lower prices and faster development timelines.
Given that healthcare is local and given that healthcare is not a perfect market because of moral hazard and adverse selection, why has the FTC allowed mergers in markets where competetion is minimal or non-existant?