More hospitals in New Jersey are joining large health systems, leading to increased prices and medical debt for residents, while larger hospital systems benefit financially. This conclusion comes from research conducted by the Urban Institute, a think tank focusing on economic and social policy research. The study analyzed data over a decade to examine the relationship between hospital market concentration and individuals' ability to pay their medical bills.
From 2012 to 2022, the research revealed that patients in counties with significant increases in hospital market concentration faced more difficulties in paying off medical debt. Healthcare experts argue that this trend highlights the negative impact of unchecked hospital consolidation on consumers.
"If you’re the dominant health system, it puts you in the driver’s seat when you go to negotiate prices or rates — you have a lot of leverage in that situation," said Joel Cantor, director of the Rutgers Center for State Health Policy. "If you’re the hospital, that’s good. But if you’re the insured or the person paying the premiums, it isn’t great."
Cantor also noted potential benefits for smaller hospitals involved in mergers but acknowledged existing research indicating these benefits are not without costs to patients.
In 2022, then-Senator Nia Gill introduced a bill (S1428) establishing a state health insurance public option in New Jersey's Senate; however, it did not advance beyond committee discussions.
Experts emphasize that New Jersey must address rising medical costs before reaching critical levels. "I think it’s one of the great challenges of the day," Cantor remarked.
