Less Competition Among Doctors Results in Higher Medical Costs.
A new study has found that competition between medical practices leads to lower healthcare costs in the surrounding vicinity. Investigators found that medical practices charged 3.5 to 5.4% more for their services in regions of the United States with fewer competing clinics than in the areas with the most competition. These higher charges could translate to tens of billions of dollars in extra spending across the entire country each year.
Journal of the American Medical Association, October 2014