There has been a wave of healthcare consolidation following the passage of the Affordable Care Act (ACA). There has been a wave of mergers and acquisitions as pharmaceutical companies largely participate in this madness. To try to control costs and increase their advantage in healthcare contracting, doctors are banding together in associated practices. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Private medical practices are acquired by hospitals. Many health systems are linking up with Accountable Care Organizations (ACOs), while some other small hospitals are being acquired by larger hospitals. There have also been many mergers in the insurance market. Costs are rising due to consolidation of healthcare organizations, as indicated in studies reported by the Journal of the American Medical Association and published by the public health policy departments of Stanford University and the University of California, Berkley. While there is no consumer-focused reason for it to consolidate, it is difficult for companies to survive on their own in the times of the Affordable Care Act, just as it is difficult for new entrants into the market to move beyond the status quo and stay in the competition by citing regulations and government mandates; so they are consolidating. The possibility of more insurers withdrawing from the market will increase if the Affordable Care Act refuses to approve proposed health insurance mergers. Because of this the law will collapse and everyone will have to turn to the private sector (which is not affordable for many). So a one-size-fits-all system like “Medicare for All” will be needed, in which competition is eradicated by government resulting in increased costs and reduced care and access. Price increases are severe in markets where hospital monopoly exists. Compared to markets with four or more hospitals, hospital prices in the monopoly market are 15.3% higher. The two proposed mergers are currently under study, and if they are approved, the number of major national health insurers will decrease from five to three large companies. There were 66 hospital mergers in 2010, and since then the rate of hospital mergers has increased by 70%. Antitrust laws were passed and organizations such as the Federal Trade Commission were established by the U.S. government to prevent monopoly and reduce anticompetitive behavior. When the effect of mergers and acquisitions would be to reduce competition or attempt to establish a monopoly, Section 7 of the Clayton Act prohibits such mergers and acquisitions. Horizontal mergers create the most significant antitrust concern. Block the merger which could lead to worsening effects on the healthcare market and treatment costs. The guidelines for horizontal mergers were designed by the Federal Trade Commission and the Department of Justice. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay The effects of the proposed merger may be examined by antitrust agencies from the pre-merger notification of the Hart-Scott-Radino Act. Even completed mergers that appear to harm customers as a result are investigated by antitrust agencies.