NC Healthcare Costs Rise 12% Amid Hospital Consolidation
A new report finds North Carolina healthcare spending grew 12% last year, outpacing the national average, as hospital mergers continue to reduce competition in many markets across the state.
North Carolina healthcare costs rose 12% over the past year, significantly outpacing the national average of 7.5%, according to a new analysis from the NC Department of Health and Human Services. Researchers point to ongoing hospital consolidation as a primary driver of the price increases.
The report found that markets where a single health system controls more than 50% of hospital beds saw average price increases of 15%, compared to 8% in more competitive markets. North Carolina now has some of the most concentrated hospital markets in the Southeast.
"When patients don't have meaningful choices, prices go up," said the report's lead author. "This is basic economics playing out in real time in our healthcare system."
Major findings include: - Average family health insurance premiums in NC reached $24,800 annually - Emergency room visits cost an average of $3,200, up 18% from the previous year - Prescription drug spending increased 14% - Rural hospitals continue to operate on thin margins despite overall spending increases
The report has reignited debate about Certificate of Need laws, which regulate new healthcare facility construction and expansion. Proponents say the laws protect rural hospitals from unfair competition, while critics argue they entrench monopolies and drive up costs.
Consumer advocates are calling for increased price transparency requirements and stronger antitrust enforcement. Several state legislators have announced plans to introduce legislation addressing healthcare market competition during the upcoming session.
The healthcare industry responded by noting that rising costs reflect investments in new technology, workforce recruitment in a competitive labor market, and the ongoing impact of pandemic-era financial losses.