Combatting the Hospital Monopoly Effect (Guest: Avik Roy)
Many consumers main source of health care is their regional hospital. How and why is there so little competition in the health care market?
When Rep. Banks (R-IN) was looking to draft legislation to help bring down the rising costs of health care in the country, he turned to Avik Roy, a former physician and well-known health care expert. The result is the Hospital Competition Act of 2018, a bill that seeks to disincentive mergers between hospitals and control monopolies in the hospital market. As Roy attests, hospital costs are a huge part of health care costs and hospital monopolies allow enormous negotiating power to those providers at the expense of the patient. He lays out details of the bill and discusses the future of competition and choice in health care.