Economics Expert: Hospital Competition Is Good

An economics expert Mercy Health System consulted with for its Certificate of Need application says competition is good and can lower consumers’ health-care costs, according to testimony Tuesday.

The expert put together a report showing health-care costs would drop by as much as 9 percent in McHenry County if Mercy were allowed to build its Crystal Lake hospital, according to testimony.

Mercy Vice President Rich Gruber said Mercy would help provide competition to Centegra Health System, which has hospitals in McHenry and Woodstock.

Centegra has what Gruber called a “monopoly” in McHenry County, where it provides about 95 percent of the hospital beds, he said.

The result is that Centegra cannot offer competitive prices to consumers, Gruber said.

Gruber referred to the study, which states there are three benefits when hospitals have competition: consumer choice is expanded, a higher quality of service is provided and prices are driven lower.

“The bottom line is really simple,” he said. If Mercy can build its hospital, the prices would drop as much as 9 percent, “thus improving the financial ability of McHenry County (residents) to obtain necessary health-care services.”

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