State Economist Warns Hospital Mergers Can Raise Prices

A Minnesota health economist is warning lawmakers that hospital mergers can raise prices without clearly improving care.

The Department of Health economist told a Senate committee that some studies have found price increases as high as 20 percent after consolidation. He said research does not show clear evidence of better quality.

The warning comes amid major health-system combinations, including the proposed HealthPartners–Essentia merger. Company leaders say consolidation can improve financial stability and preserve access to care. The impact of pending Minnesota deals remains uncertain.