The Hidden Drivers of Hospital Consolidation

Phil Kerpen, President of American Commitment, discusses the hidden drivers of hospital consolidation in a recent episode of the Health Policy Podcast. Key topics include healthcare costs, market consolidation, healthcare reform, and patient advocacy.

WASHINGTON — July 14, 2026 — In a new episode of the Health Policy Podcast, Phil Kerpen, President of American Commitment, explores the factors contributing to rising healthcare costs and the consolidation of hospital systems. He emphasizes the need for reform in healthcare policy, focusing on the implications of market consolidation and the influence of lobbyists in shaping healthcare legislation.

Kerpen highlights that hospitals often evade blame for high healthcare costs, despite their significant role in the market. He notes that public perception favors hospitals, which allows them to increase prices while benefiting from tax-exempt status. "Hospitals get a lot of explicit subsidies, but they also get a lot of implicit subsidies through barriers to entry," Kerpen said. He argues that this consolidation limits patient choice and competition, ultimately harming consumers.

The episode also addresses the lobbying power of healthcare organizations. Kerpen states, "Healthcare lobbyists spend about six times what defense industry lobbyists spend right now at the federal level." This influence contributes to a regulatory environment that favors large hospital systems and hinders competition, further exacerbating the issues surrounding healthcare costs.

American Commitment is a national free market advocacy group focused on fiscal, economic, and regulatory issues. The organization aims to educate and engage citizens to promote free market solutions in various policy areas, including healthcare.

About the Health Policy Podcast

The Health Policy Podcast provides insights into energy, infrastructure, policy, and economic growth. The show features expert guests discussing current issues and trends in health policy, aiming to inform listeners about the complexities of the healthcare system.