Big Med: Megaproviders and the High Cost of Health Care in America

Megaproviders, expansive health care organizations, are the most ubiquitous cause of the costly and underperforming US health care system. David Dranove and Lawton Robert Burns argue that megaproviders have gobbled up market share and turned independent physicians into salaried employees, delivering on none of their early promises. They offer practical recommendations for improving competition policies to reform megaproviders and create an environment of better care for all.

Format: Hardback
Length: 336 pages
Publication date: 25 May 2021
Publisher: The University of Chicago Press

The healthcare system in the United States is widely acknowledged to require reform, but there is disagreement over where the necessary improvements should be made. Some argue that insurers, drug manufacturers, and doctors themselves should be the focus of reform efforts. However, in their book "Big Med," David Dranove and Lawton Robert Burns argue that the most ubiquitous cause of the costly and underperforming healthcare system is the rise of megaproviders, large healthcare organizations that have become the face of American medicine.

Megaproviders have emerged in the 1990s and have rapidly grown in size and influence. They promise scale economies and organizational collaboration, but in reality, they have failed to deliver on their early promises. These organizations have gobbled up market share, turning independent physicians into salaried employees of large bureaucracies. Patients have suffered as a result, with higher costs and lesser care. Physicians, too, report increasingly low morale, making it challenging for most healthcare systems to implement meaningful reforms.

In "Big Med," Dranove and Burns combine their respective skills in economics and management to provide a nuanced explanation of how the provision of healthcare has been corrupted and submerged under consolidation. They offer practical recommendations for improving competition policies that would reform megaproviders and enable them to achieve the efficiencies and quality improvements they have long promised.

The book is an essential read for understanding the current state of the healthcare system in America and the steps urgently needed to create an environment of better care for all of us. It highlights the need for policymakers to address the growing dominance of megaproviders and promote competition in the healthcare market. By reforming these organizations, we can improve the quality of care, reduce costs, and ensure that patients receive the best possible treatment.

In conclusion, "Big Med" is a thought-provoking and important book that sheds light on the challenges facing the healthcare system in the United States. By advocating for reform and promoting competition, Dranove and Burns offer practical solutions for improving the healthcare system and creating a better future for all Americans.

Weight: 612g
Dimension: 160 x 237 x 28 (mm)
ISBN-13: 9780226668079