September 14, 2021
  • A study published in Health Affairs found that the majority of high-price hospitals are active in markets that meet federal definitions of low or moderate concentration. The researchers found that more than a quarter of all hospitals they deemed to be charging high prices fell within unconcentrated markets, or those with an Herfindahl-Hirschman Index (HHI) below the FTC’s cutoff score of 1,500. Meanwhile, about 17 percent and 13 percent of high-price hospitals providing inpatient and outpatient services, respectively, were located in highly concentrated markets with HHIs exceeding 4,000. As such, the researchers concluded that “price regulation policy proposals that specifically target concentrated hospital markets would only impact a minority of hospitals charging the highest prices for their services.” (Study here; Article here)