Hospital Consolidations

Pittsburgh's UPMC and Mercy Hospital have proposed a merger that may test anti-trust laws.  William B. Vogt , Associate Professor of Economics, comments on the costs and benefits likely to occur when hospitals merge.

Vogt, who has advised the Federal Trade Commission on hospital anti-trust issues, notes that "Research suggests that a national wave of hospital mergers during the 1990's raised inpatient prices by at least 5 percent."  In addition, "The prices that health insurers pay hospitals for services can increase by 40 percent or more when merging hospitals are closely located."