In 83% of metropolitan areas, one or two health systems controlled more than 75% of the market
In case you missed it – a new analysis from KFF finds one or two health systems controlled the entire market for inpatient hospital care in nearly half of metropolitan areas in 2024, proving once again that hospital consolidation is running rampant across the country and driving up premiums and out-of-pocket costs for families.
The report notes that hospital consolidation reduces competition and contributes to higher prices – and highlights that that hospital spending has been a leading driver of national health spending growth over time, accounting for 40% of the increase from 2022 to 2024.
Key findings from the report include:
- Nearly one in five (19%) markets were controlled by a single health system, and more than one in four (27%) markets were controlled by two systems.
- One health system controlled at least half of the market in roughly three out of four metropolitan areas (76%) and at least a quarter of the market in nearly every metro area (98%).
- In fourteen relatively large metropolitan areas with four or more health systems, the two largest health systems controlled at least 75% of the market.
- A striking 72% of people in metropolitan areas lived in highly concentrated hospital markets.
- More than two-thirds of hospitals (69%) are now part of a larger system – a significant increase from 56% in 2010.
- Four out of five metropolitan areas (80%) became more concentrated between 2015 and 2024 or were dominated by a single hospital or health system during this period.
- In more than four out of five (83%) of metropolitan areas, one or two health systems controlled more than 75% of the market.
Read the full KFF analysis HERE.
Hospital Watch is a watchdog group dedicated to shining a light on corporate hospitals as the top culprit in driving up U.S. healthcare costs – exposing corporate hospitals’ monopolistic practices in price gouging patients with excessive markups and hidden fees with no transparency while forcing patients and employers to pay more for their care. Hospital Watch is a project of Better Solutions for Healthcare.