Provider Consolidation

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Provider Consolidation Hospitals 528 hospitals were involved in mergers/acquisitions between 2010 and 2012 Physician practices 29% of MDs now employed by hospitals or hospital-owned practices (up from 16% in 2007) Increase in mean practice size outside hospitals Dialysis clinics Share of top two chains is ~2/3 (up from ~1/3 in 2000); jointly operate 3,500+ clinics Long-term care pharmacies Share of top two chains is now 57%; jointly operate 200+ pharmacies Source: Presentation by Leemore Dafny, Northwestern University, to Commonwealth Fund, June 30, 2014.