Consolidating healthcare organizations

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Virtually all health care in the United States is delivered through markets, with a few small exceptions for specific groups, such as the Veterans Administration.

This means that the health care system will work only as well as the markets upon which it relies.

Markets are the chassis upon which the health care system runs — and if the chassis is broken, the car won’t run, no matter how elegant or well designed the reforms designed to act upon it.

There is no shortage of proposed solutions, but central to the best of them is the idea that health care needs more competition.

health care system is inefficient, unreliable, and crushingly expensive.

However, there is growing concern that those markets do not work as well as they should: prices are high and rising, there are quality problems, and there is too little organizational innovation.

In my opinion, consolidation, concentration, and market power have a great deal to do with these problems.

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