Article Summary –
Research by the Urban Institute and Private Equity Stakeholder Project indicates that hospital market concentration and private equity’s growing involvement in billing and collections worsen the U.S. medical debt crisis. With 100 million Americans owing over $220 billion, efforts like the American Rescue Plan aim to mitigate this debt.
Hospital Market Concentration and Private Equity Widen US Medical Debt Crisis
Research from Urban Institute and Private Equity Stakeholder Project highlights how hospital market concentration and private equity in health care billing worsen the US medical debt crisis.
These practices increase medical debt as Americans face aggressive debt collection and inflated prices from monopolized hospitals.
According to the Consumer Financial Protection Bureau (CFPB), 100 million Americans owe over $220 billion in medical debt. Communities of color and the South are disproportionately affected.
The problem
Medical debt is a crisis in the US due to hospital mergers, private equity’s role in billing, and illegal debt collection practices. Hospital consolidation reduces competition, leading to higher prices and worsening medical debt.
In 2017, 90% of US hospital markets were highly concentrated, with rising consolidation. When people can’t pay, medical debt grows.
Possible solutions
The Urban Institute and Private Equity Stakeholder Project call for more patient protections. Vice President Kamala Harris has been working on the issue, pushing for debt relief through the American Rescue Plan and CFPB’s rule to remove medical debt from credit reports.
North Carolina’s new Medical Debt Relief Incentive Program aims to eliminate $4 billion in debt. The Urban Institute advocates for stricter nonprofit hospital regulations and better enforcement of antitrust laws to prevent anti-competitive mergers.
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