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Coping With Concentration.

Thomas L Greaney1

  • 1Thomas L. Greaney (greaney@uchastings.edu) is a professor at the University of California Hastings College of Law, in San Francisco. At the time of this work, he was the Chester A. Myers Professor of Law at Saint Louis University School of Law, in Missouri.

Health Affairs (Project Hope)
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Summary
This summary is machine-generated.

Provider market power significantly increases US healthcare costs. Price-capping policies for dominant providers may be the most effective solution to control expenses and maintain a competitive healthcare system.

Keywords:
COPAHospitalsantitrustcompetitiondominant providers

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Area of Science:

  • Health economics
  • Antitrust law
  • Healthcare policy

Background:

  • Provider market power is a major contributor to high healthcare costs in the US.
  • Existing antitrust and regulatory efforts have largely failed to curb this issue.
  • Addressing provider market power is crucial for the success of market-based healthcare reforms.

Purpose of the Study:

  • To analyze market-oriented approaches for controlling provider market power.
  • To evaluate the effectiveness of antitrust law and regulatory interventions.
  • To identify optimal strategies for cost containment in healthcare.

Main Methods:

  • Analysis of historical and proposed market-oriented approaches.
  • Critique of antitrust litigation and regulatory regimes (e.g., Certificate of Public Advantage laws).
  • Examination of price-capping policies as a cost-control mechanism.

Main Results:

  • Antitrust law has a limited and often ineffective role in addressing existing provider market power.
  • Current regulatory approaches, such as Certificate of Public Advantage laws, have significant deficiencies.
  • Price-capping policies show potential for cost control, despite administrative challenges.

Conclusions:

  • Existing antitrust and regulatory tools are inadequate for managing provider market power.
  • Price capping emerges as a promising strategy for controlling healthcare costs.
  • Effective policies are needed to ensure a competitive healthcare delivery system.