Ways and Means to probe healthcare consolidation

The House Ways and Means Health subcommittee will hold a hearing next week on consolidation in the healthcare industry.

The committee' announcement highlights hospitals, which are rapidly purchasing or merging with other hospitals, and physician practices. Large insurance companies are also buying smaller carriers, the release notes.

"In some circumstances, consolidation produces desirable results like improved efficiency and quality," subcommittee Chairman Wally Herger (R-Calif.) said in a statement. "However, we must ensure that consolidation is not simply used as a tool to increase revenues by driving up Medicare spending and the cost of private health insurance."

The hearing is scheduled for Sept. 9.