Manhattan Institute for Policy Research, Inc.

As health care costs continue to rise, concern is growing about the possible effects of provider consolidations and declining competition.

New federal and State policies focused on improving health outcomes through coordinated care have created incentives for providers to consolidate or integrate networks. However, greater consolidation could result in uneven market power. Consumer empowerment in the health care market relies on preserving competition, which enables consumers to shop around and compare different providers. NYHealth awarded a grant to the Manhattan Institute to examine the current landscape of competition among health care providers in New York and offer recommendations for preserving and enhancing competition.

Under this grant, Manhattan Institute produced a report that assessed how provider consolidation is affecting health care quality and cost; explored best practices for effective competition; and offered a roadmap to encourage pro-competitive integration. It formed a workgroup of economists, academics, and other thought leaders in the health care field to inform the report. The report addressed topics such as the long-term effects of mergers and consolidations on health care quality and cost; the degree to which provider concentration creates local monopolies or an uncompetitive market; and regulatory barriers and contractual terms that affect market entry by additional competitors.

Read the report, “Keeping Score: How New York Can Encourage Value-based Health Care Competition.”