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Story perspectives

Surge in Hospital Acquisitions Drives Up Healthcare Costs

7/22/2025

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Story summary
  • Hospital acquisitions of physician practices surged from 27.5% in 2008 to 47.2% in 2016, according to the National Bureau of Economic Research. This trend has driven up healthcare costs, with OB-GYN mergers causing labor and delivery expenses to climb by 3.3% and physician prices by 15.1%, stifling competition and complicating regulatory efforts.