Do prices for identical services by the same doctor increase by up to four times when hospitals acquire physicians’ offices, as Rep. Kevin Hern claimed?

Studies show that hospital acquisition of physician practices increased prices for the same services, by the same practices, by 14%-15%. Though one study found two to four times greater prices at hospital-owned sites, it did not investigate causality between acquisition and changes in particular physicians’ service prices. 

Through competition reduction, consolidation – such as physician practice acquisition – leads to higher prices without necessarily improving quality. Service prices of physicians previously integrated with acquiring hospitals increased 9% despite no changes other than the acquisition of physicians in their specialty. 

Acquisitions have been on the rise. From 2008 to 2016, the share of hospital-employed physicians nearly doubled to 47.2%. As of 2023, hospitals, health systems, and corporations employ 77.6% of physicians and own 58.5% of practices. 

Almost half of metropolitan areas’ inpatient care markets were controlled by one or two health systems in 2024.