Structure of Hospital Networks in California Affects Pricing

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Vol. VIII, No. 3
April 2005
HCFO

Hospital networks raise potential antitrust issues because they sometimes bring together providers that are otherwise competitors in a given market. Specifically, the concern is that the participating hospitals will use the network to coordinate prices and market strategies in ways that are anti-competitive, which drives up costs and ultimately hurts the consumer/patient by reducing access to care.