An Urban Institute article highlights the pressing issue in the healthcare sector of the correlation between hospital market concentration and the alarming rise in medical debt.

Research indicates that in areas with high hospital market concentration, patients face medical bills that are, on average, 12% higher than in more competitive markets.

This lack of competition not only drives up prices but also correlates with a staggering 33% increase in the likelihood of patients incurring medical debt. In fact, 27 million consumers had medical debt in their credit reports in 2022. These figures illustrate a troubling trend: as hospitals consolidate and wield more market power, patients find themselves facing escalating costs that often lead to financial distress.

Despite hospitals’ claims of enhancing patient care through increased efficiency, the reality often tells a different story. Many hospitals prioritize profit margins over patient welfare, leading to inflated prices for necessary services. Urban areas with fewer hospitals see these effects most acutely, creating a healthcare landscape where patients must choose between their health and their financial stability.

In light of these findings, it is crucial to advocate for policies that address monopolistic hospital practices in healthcare. The focus should be on transparency, competition, and prioritizing patient needs over profits. Better Solutions remains committed to this fight.