Possible Effect Of Changes In The ACA On The Market Power Of Healthcare Providers: [Essay Example], 476 words GradesFixer
exit-popup-close

Haven't found the right essay?

Get an expert to write your essay!

exit-popup-print

Professional writers and researchers

exit-popup-quotes

Sources and citation are provided

exit-popup-clock

3 hour delivery

exit-popup-persone
close
This essay has been submitted by a student. This is not an example of the work written by professional essay writers.

Possible Effect of Changes in the Aca on the Market Power of Healthcare Providers

Download Print

Pssst… we can write an original essay just for you.

Any subject. Any type of essay.

We’ll even meet a 3-hour deadline.

Get your price

121 writers online

blank-ico
Download PDF

There has been a wave of health care consolidation after passage of Affordable Care Act (ACA). A splurge of mergers and acquisitions has been seen as pharmaceutical companies are participating largely in this splurge. To try to control costs and to increase advantage in health care contracting, physicians are merging into group practices.

Private medical practices are acquired by hospitals. Many health systems are connecting with Accountable Care Organizations (ACO) while some other small hospitals are acquired by larger hospitals. There have been lot of mergers in insurance market too. Costs are increasing due to consolidation of health care organizations is indicated in studies reported by Journal of American Medical Association which were released by public health policy departments of Stanford University and University of California, Berkley.

Although it does not have any consumer-focused reason to consolidate, it is hard for companies to survive on their own in the time of Affordable Care Act as well as it is difficult for new entrants in the market to go beyond the status quo and maintain themselves in the competition sue to government regulations and mandates; so they are consolidating. The possibility of more insurers withdrawing from the market will be increased if Affordable Care Act takes refuses to pass proposed health insurance mergers. Due to this law will crumple and everyone will have to go to private sector (which is not affordable to many). So it will call for a universal system for all like “Medicare for all” wherein the competition is eradicated by the government resulting in higher costs and reduction in care and access. Price increase are heavy in the markets where there exists a monopoly of hospital. as compared to the markets with four or more hospitals, the hospital prices in the monopoly market are 15. 3% higher.

The two proposed mergers are being viewed currently and if they are sanctioned, the number of top national health insurers will be decreased from five to three massive companies. There were 66 hospital mergers in 2010 and from then the rate of hospital mergers have increased by 70 percent.

Antitrust laws have been passed and organization like Federal Trade Commission has been established by the government of United States to avoid monopoly and to decrease anticompetitive behaviour. When the effect of mergers and acquisition might be to lower the competition or try to establish a monopoly, Section 7 of Clayton Act prohibits such mergers and acquisition. Horizontal mergers create the most important concern for antitrust. It blocks the merger that might lead to deteriorating effects on healthcare market and costs of care. Horizontal merger guidelines have been designed by Federal Trade Commission and Department of Justice.

The effects of the proposed merger can be scrutinized by antitrust agencies by the premerger notification of Hart-Scott-Radino act. The completed mergers that consequently seem to harm the customers are also investigated by antitrust agencies.

Remember: This is just a sample from a fellow student.

Your time is important. Let us write you an essay from scratch

100% plagiarism free

Sources and citations are provided

Find Free Essays

We provide you with original essay samples, perfect formatting and styling

Cite this Essay

To export a reference to this article please select a referencing style below:

GradesFixer. (2020). Possible Effect Of Changes In The ACA On The Market Power Of Healthcare Providers. Retrived from https://gradesfixer.com/free-essay-examples/possible-effect-of-changes-in-the-aca-on-the-market-power-of-healthcare-providers/
GradesFixer. "Possible Effect Of Changes In The ACA On The Market Power Of Healthcare Providers." GradesFixer, 14 Jun. 2020, https://gradesfixer.com/free-essay-examples/possible-effect-of-changes-in-the-aca-on-the-market-power-of-healthcare-providers/
GradesFixer, 2020. Possible Effect Of Changes In The ACA On The Market Power Of Healthcare Providers. [online] Available at: <https://gradesfixer.com/free-essay-examples/possible-effect-of-changes-in-the-aca-on-the-market-power-of-healthcare-providers/> [Accessed 18 September 2020].
GradesFixer. Possible Effect Of Changes In The ACA On The Market Power Of Healthcare Providers [Internet]. GradesFixer; 2020 [cited 2020 Jun 14]. Available from: https://gradesfixer.com/free-essay-examples/possible-effect-of-changes-in-the-aca-on-the-market-power-of-healthcare-providers/
copy to clipboard
close

Sorry, copying is not allowed on our website. If you’d like this or any other sample, we’ll happily email it to you.

    By clicking “Send”, you agree to our Terms of service and Privacy statement. We will occasionally send you account related emails.

    close

    Attention! this essay is not unique. You can get 100% plagiarism FREE essay in 30sec

    Recieve 100% plagiarism-Free paper just for 4.99$ on email
    get unique paper
    *Public papers are open and may contain not unique content
    download public sample
    close

    Sorry, we cannot unicalize this essay. You can order Unique paper and our professionals Rewrite it for you

    close

    Thanks!

    Your essay sample has been sent.

    Want us to write one just for you? We can custom edit this essay into an original, 100% plagiarism free essay.

    thanks-icon Order now
    boy

    Hi there!

    Are you interested in getting a customized paper?

    Check it out!
    Having trouble finding the perfect essay? We’ve got you covered. Hire a writer

    GradesFixer.com uses cookies. By continuing we’ll assume you board with our cookie policy.