As hospital mergers continue, California state Sen. Bill Monning is sponsoring a bill to bar certain contracting practices involving hospital chains that he calls anti-competitive. Studies across America have shown that big hospital chains tend to use their market power to raise prices.
A recent study at the University of Southern California found that while hospital prices in California have grown overall, the costs are higher in the state’s largest chains.
Mr. Monning’s proposals include requiring health-insurance plans to contract with all affiliates of a hospital.
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