House Energy and Commerce Committee Asks MedPAC to Examine Consolidation

House Energy and Commerce Committee leaders Aug. 30 sent a letter to the Medicare Payment Advisory Commission asking it to conduct additional research on hospital consolidation and the financial impact it has on Medicare patients and the program. Among other areas, the committee asks MedPAC to examine recent trends in hospital consolidation and the effects on hospitals and patients’ costs; how the integration between physicians and hospitals has affected Medicare payments for physician services; and questions related to the use of the 340B drug savings program. A 2017 study prepared for the American Hospital Association (AHA) found that hospital mergers result in efficiencies, savings, innovation and quality improvements essential to transforming health care delivery, all of which benefits patients. The committee asks MedPAC to respond to this request within 30 days.

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