HA 525 Week 2 Discussion How the affordable care act fuels health care market consolidation

Discussion Prompt

Complete your week 2 required discussion prompt.

How the affordable care act fuels health care market consolidation

By Christopher M. Pope

The growth of monopoly power among health care providers bears much responsibility for driving up the cost of health care over recent years. By mandating that general hospitals provide uncompensated care, state and federal legislators have given them cause to insist on regulations and discriminatory subsidies to protect them from cheaper competitors. Instead of freeing these markets to allow the provision of care by the most efficient organizations, the Affordable Care Act endorses these anti-competitive arrangements. It extends the premium paid for treatment in general hospitals, employs the purchasing power of the Medicare program to encourage the consolidation of medical practices, and reforms insurance law to eliminate many of the margins for competition between carriers. Institutions sheltered from competition tend to accumulate unnecessary costs over time. In the absence of pro-competitive reforms, higher spending under Obamacare is likely to only further inflate prices faced by those seeking affordable care.

Source: Pope, C. M. (2014). How the affordable care act fuels health care market consolidation. The Heritage Foundation. Retrieved from http://www.heritage.org/research/reports/2014/08/how-the-affordable-care-act-fuels-health-care-market-consolidation

  • Discuss the pros and cons that stem from this statement.

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Course: HA 525 Marketing Management for Health Care Professionals
School: My West Coast University

  • 15/07/2020
  • 16
Categories: Questions

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