Dialogue. Industry consolidation: what's at stake for consumers and purchasers?
The behavioral healthcare field has undergone massive consolidation, especially in the last year. Health plans, hospital systems, and community-based organizations have all been affected. Economists argue that consolidation is a logical consequence of the current, competitive healthcare market. But consumers and purchasers wonder if the mergers and acquisitions will benefit them. Efficient markets are supposed to stimulate competition in ways that reward purchasers and consumers of services. When prices go down and quality improves as a result of competitive market forces, then the market has functioned properly and has served its purpose. Behavioral healthcare, however, is an essential human service, not a commodity. And the consumers and purchasers of healthcare are typically not the same person or entity, which also makes the healthcare market different from the markets for cars, computers, food, or any other type of consumer product. More than 100 million Americans now receive managed behavioral health benefits from only three companies. With such intense power concentrated in the hands of such a small number of providers, the time has come to evaluate the impact of the consolidation trend. In the following dialogue article, leaders, representing different interest groups review the benefits and risks of massive industry consolidation, and propose solutions to the critical challenges that it raises.
Greenberg
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Allen
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Wider
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Ray
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D003254:Consumer Advocacy; D003659:Decision Making, Organizational; D004465:Economic Competition; D017598:Efficiency, Organizational; D008329:Managed Care Programs / Q000191:economics / Q000458:organization & administration; D008605:Mental Health Services / Q000191:economics / Q000458:organization & administration* / Q000592:standards; D009935:Organizational Affiliation; D017063:Outcome Assessment, Health Care; D011787:Quality of Health Care; D012308:Risk Management; D014481:United States