Chris Fernandez: Hospital mergers rarely benefit consumers

To The Daily Sun,

When it was announced that Concord Hospital was seeking to acquire assets from bankrupt Lakes Region General Hospital, many in the community were relieved…at first.

That relief turned to dismay, however, when it was announced earlier this month that Concord Hospital was, in fact, planning to shut down Advanced Orthopedic Specialists in Gilford after 50 years of serving the community, providing a stark reminder that when businesses merge and drive out competition, consumers (in this case patients) are often the ones paying the price.

Hospital mergers rarely benefit consumers, if ever. The Federal Trade Commission has reported that when hospitals merge they’re able to charge upwards of 50% higher prices due to loss of competition. Research from the Medicare Payment Advisory Commission shows similar outcomes. And, these price increases show up in rising health insurance premiums, the bulk of which are paid by employers.  

Worse, the lack of hospital price transparency means costs can vary wildly from one facility to the next for the same treatments or procedures – in the same geographies. Too often, we don’t even know what we are paying for.

Having owned a business in the Lakes Region, I can attest that rising health care costs are the number one obstacle to economic growth and investment. Sometimes employers feel like they are working just to cover health care costs.

For the Lakes Region’s sake, I hope the hardworking employees at LRGH will keep their jobs, that regulators will lean heavily on Concord Hospital to prevent price gouging, and that policymakers will focus on addressing the drivers of high health care costs for small business owners.

Chris Fernandez

Laconia