The hospital acquisition of private physician practices has led to increased costs for services like childbirth. A National Bureau of Economic Research study shows that after hospitals purchase OB-GYN practices, costs for labor and delivery rise significantly. A notable shift in the industry reveals that nearly half of U.S. physicians now work for hospitals, with just over 40% in private practices. The reduction in competition resulting from these acquisitions contributes to rising prices. Medical debt remains a significant issue, affecting millions of Americans with serious financial implications.
Two years after a hospital buys an OB-GYN practice, prices for labor and delivery jump an average of $475 and physician prices rise by $502.
Researchers focused on births, which are the most common reason for hospital admission among people with private insurance.
Only about 42% of U.S. physicians work in a physician-owned private practice; nearly 47% work for hospitals, a sharp rise over the past several years.
Medical debt is a leading cause of bankruptcy in the United States, with about 14 million Americans owing more than $1,000 in medical debt.
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