{"id":3605,"date":"2025-08-07T09:26:11","date_gmt":"2025-08-07T14:26:11","guid":{"rendered":"https:\/\/westplexnews.com\/index.php\/2025\/08\/07\/when-hospitals-buy-physician-practices-prices-go-up-2\/"},"modified":"2025-08-07T09:26:11","modified_gmt":"2025-08-07T14:26:11","slug":"when-hospitals-buy-physician-practices-prices-go-up-2","status":"publish","type":"post","link":"https:\/\/westplexnews.com\/index.php\/2025\/08\/07\/when-hospitals-buy-physician-practices-prices-go-up-2\/","title":{"rendered":"When hospitals buy physician practices, prices go up"},"content":{"rendered":"<p><img decoding=\"async\" width=\"1024\" height=\"671\" src=\"https:\/\/missouriindependent.com\/wp-content\/uploads\/2025\/08\/GettyImages-1489206147-2048x1341-1-1024x671.jpg\" class=\"attachment-large size-large wp-post-image\" alt=\"\" loading=\"lazy\" \/><\/p>\n<p> A medical worker walks by a hospital entrance in New York City. A new study found that hospitals are increasingly buying up private physician-owned practices, and costs for services are rising (Spencer Platt\/Getty Images).<\/p>\n<p>As more hospitals have gobbled up private physician practices, costs for childbirth and other services have gone up, according to a new study.<\/p>\n<p>Since the early aughts, the share of physicians in the United States working for hospitals <a href=\"https:\/\/www.nber.org\/papers\/w34039#:~:text=nearly%20doubling%20the%20share%20of%20physicians%20working%20for%20hospitals%20between%202008%20and%202016.\" target=\"_blank\">has nearly doubled<\/a>, according to the <a href=\"https:\/\/www.nber.org\/papers\/w34039\" target=\"_blank\">study<\/a> published by the National Bureau of Economic Research, a nonprofit research organization.<\/p>\n<p>And as fewer doctors work in physician-owned practices, patients or their insurers end up paying more, the study\u2019s authors found.<\/p>\n<p>For example: Two years after a hospital buys an OB-GYN practice, prices for labor and delivery jump an average of $475 and <a href=\"https:\/\/tobin.yale.edu\/research\/hospitals-are-gobbling-physician-practices-and-health-care-prices-are-rising-result#:~:text=Two%20years%20after%20a%20hospital%20buys%20an%20OB-GYN%20practice%2C%20prices%20for%20labor%20and%20delivery%20are%20up%20by%20%24475%2C%20an%20increase%20of%203.3%25.%20Physician%20prices%20are%20up%20%24502%2C%20an%20increase%20of%2015.1%25.%C2%A0\" target=\"_blank\">physician prices rise by $502<\/a>, according to the study. Researchers <a href=\"https:\/\/www.nber.org\/papers\/w34039#:~:text=Focusing%20on%20childbirths%2C%20the%20most%20ubiquitous%20admission%20among%20the%20privately%20insured%2C\" target=\"_blank\">focused<\/a> on births, which are the most common reason for hospital admission among people with private insurance.<\/p>\n<p>This rapid acquisition by hospitals is reshaping a U.S. industry once dominated by tens of thousands of small, physician-owned practices.<\/p>\n<p>Only about 42% of U.S. physicians work in a physician-owned private practice, according to the most recent <a href=\"https:\/\/www.ama-assn.org\/system\/files\/2024-prp-pp-characteristics.pdf\" target=\"_blank\">survey data<\/a> from the American Medical Association. Nearly 47% work for hospitals, a sharp rise over the past several years. Most emergency room physicians are now <a href=\"https:\/\/www.annemergmed.com\/article\/S0196-0644(25)00990-4\/fulltext\" target=\"_blank\">employed by hospital systems or by private equity-owned staffing groups<\/a>.<\/p>\n<p>The new research offers further evidence for how hospital acquisitions of private practices \u201ccan result in anticompetitive price increases,\u201d said Matthew Grennan, one of the study\u2019s authors and an associate professor of economics at Emory University, in a news release.<\/p>\n<p>\u201cAs a result, I think economists and others in the antitrust community are likely to give more careful consideration to these potential sources of harm,\u201d he said.<\/p>\n<p>Medical debt is <a href=\"https:\/\/pmc.ncbi.nlm.nih.gov\/articles\/PMC6366487\/#:~:text=The%20majority%20(58.5%25)%20%E2%80%9Cvery%20much%E2%80%9D%20or%20%E2%80%9Csomewhat%E2%80%9D%20agreed%20that%20medical%20expenses%20contributed%2C\" target=\"_blank\">a leading cause of bankruptcy<\/a> in the United States, with about 14 million Americans owing <a href=\"https:\/\/www.kff.org\/health-costs\/issue-brief\/the-burden-of-medical-debt-in-the-united-states\/#:~:text=Approximately%2014%20million%20people%20(6%25%20of%20adults)%20in%20the%20U.S.%20owe%20over%20%241%2C000%20in%20medical%20debt\" target=\"_blank\">more than $1,000 in medical debt<\/a>, according to research nonprofit KFF.<\/p>\n<p>These post-merger price increases are driven by reduced competition, Grennan and his fellow researchers found. Yet there\u2019s been little effort by federal or state regulators to halt hospital mergers that could lead to higher prices for consumers.<\/p>\n<p>But states have taken some steps toward lowering medical costs in recent years.<\/p>\n<p>Bipartisan groups of lawmakers in more than a dozen states have <a href=\"https:\/\/stateline.org\/2024\/04\/25\/youve-covered-your-copayment-now-brace-yourself-for-the-facility-fee\/\" target=\"_blank\">addressed<\/a> so-called \u201cfacility fees,\u201d which are charges that some hospitals tack on for patient visits to hospital-owned physician offices.<\/p>\n<p>This year in Oklahoma, Republican lawmakers passed a <a href=\"https:\/\/legiscan.com\/OK\/votes\/SB889\/2025\" target=\"_blank\">bill<\/a> requiring hospitals to make the cost of many of their services more transparent to patients so they\u2019re aware of the costs. Providers can face penalties for noncompliance. <a href=\"https:\/\/www.oklegislature.gov\/BillInfo.aspx?Bill=hb4148&amp;Session=2400\" target=\"_blank\">A similar Oklahoma law<\/a> authored by Democrats and passed last year requires debt collectors to submit evidence of a hospital\u2019s compliance with price transparency rules before filing to collect on medical debts from patients.<\/p>\n<p>Some states have capped the rates hospitals or physicians can charge. <a href=\"https:\/\/doi.colorado.gov\/colorado-option\" target=\"_blank\">Colorado<\/a> sets provider and hospitals rates based on a specific formula if insurance plans aren\u2019t able to lower peoples\u2019 premiums to a certain level, while <a href=\"https:\/\/www.nashp.org\/wp-content\/uploads\/2021\/04\/MT-Eval-Analysis-Final-4-2-2021.pdf\" target=\"_blank\">Montana<\/a> and <a href=\"https:\/\/www.healthaffairs.org\/doi\/10.1377\/hlthaff.2023.01021\" target=\"_blank\">Oregon<\/a> limited the amount hospitals and other providers can charge for their state employee health plan.<\/p>\n<p><em><a href=\"https:\/\/stateline.org\/\" target=\"_blank\">Stateline<\/a> is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Stateline maintains editorial independence. Contact Editor Scott S. Greenberger for questions: <a href=\"mailto:info@stateline.org\">info@stateline.org<\/a>.<\/em><\/p>","protected":false},"excerpt":{"rendered":"<p>A medical worker walks by a hospital entrance in New York City. A new study found that hospitals are increasingly buying up private physician-owned practices, and costs for services are rising (Spencer Platt\/Getty Images). As more hospitals have gobbled up private physician practices, costs for childbirth and other services have gone up, according to a&#8230;<\/p>\n","protected":false},"author":2,"featured_media":3606,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_kadence_starter_templates_imported_post":false,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3605","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>When hospitals buy physician practices, prices go up - WestplexNews.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/westplexnews.com\/index.php\/2025\/08\/07\/when-hospitals-buy-physician-practices-prices-go-up-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"When hospitals buy physician practices, prices go up - WestplexNews.com\" \/>\n<meta property=\"og:description\" content=\"A medical worker walks by a hospital entrance in New York City. 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