Hospital Mergers Drive Up Healthcare Costs, Sauer Says

October 10, 2026 - 13:40

Consolidation across the hospital industry is a major force pushing healthcare prices higher, according to Sauer, who points to growing evidence that fewer independent providers means less competition and steeper bills for patients.

The warning lands as new polling from the Kaiser Family Foundation finds close to 90% of voters say health costs will shape how they vote this fall. That figure puts the issue near the top of voter concerns, alongside the economy and inflation.

Hospital systems have merged at a steady pace over the past decade, with large networks absorbing smaller community hospitals and physician practices. Supporters argue these deals can improve efficiency and keep struggling facilities open. Critics counter that market power often translates into higher prices without clear gains in quality.

Sauer's argument fits into a broader debate over whether antitrust enforcement has kept pace with the changing structure of the healthcare industry. When one system dominates a region, insurers have fewer options to negotiate lower rates, and those costs eventually reach patients through premiums and out-of-pocket charges.

With elections approaching, the pressure is on lawmakers to address affordability. Proposals range from stricter merger reviews to price transparency rules and caps on certain charges. Whether any of these ideas gain traction remains uncertain, but the polling suggests voters are paying close attention.