It is doubtful that the dramatically escalating consolidation in both the health insurance industry and among hospitals and doctors will make our health care system either more efficient or more competitive.
This reminds me of the Cold War. Each side gets more powerful so that
the other side can’t come to dominate it. The two sides finally get so
big and powerful they reach a point of détente—let’s just agree to get
along. Or, in the case of the Cold War, one side just ultimately spends the other
side into submission.
That kind of environment doesn’t create more
efficiency or innovation but undermines real competition just like you
would expect one oligopoly facing off against another to do. We just end
up with a few muscle bound players creating sizable barriers for new
innovative and disruptive players to enter.
Read more on my Post at Forbes
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