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Health Care Reform = More Money, Bigger Hospitals, and Less Private Practices

For a while, conservatives have known that Obamacare would be a dose of bad medicine.  However, given the axiom that bog government helps big business, the same could be true with the medical industry.  Tim Carney at The Washington Examiner aptly pointed out today, from Bloomberg, Obamacare favors big hospitals, and smashes small practices.

In his column, Carney wrote that “Bloomberg report[ed] today on how Medicare payment rules have led to hospital consolidation, with small practices selling out to big hospitals.”  Additionally, Carney cited the point about consolidation:

Simon Gisby, a principal in the life science and health care practice at Deloitte Corporate Finance LLC in New York, said the trend fits with changes starting to take place under the 2010 Affordable Care Act designed by the Obama administration to overhaul health care.

This consolidation means higher costs, the article explains. Some academic studies have confirmed that hospital consolidation means higher costs, and at least one has pinned some of the blame on Obama’s Affordable Care Act:

hospitals are able to extract higher private payments when they hold more market power…. Now provisions of the ACA are encouraging further consolidation of hospitals and physicians, and the final antitrust review regulations from the Department of Justice and the Federal Trade Commission have eliminated the proposed mandatory review of certain prospective ACOs.

So, at the end of the day, it’s business as usual – with a splash of dependency.  Big government helping big business gain more power at the expense of the taxpayers.   Can we all agree that this overhaul of American health care was never meant to curb costs?

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