BJC-St. Luke’s merger could mean hospital patients pay more, experts say

The proposed merger between two of Missouri’s largest health care systems could result in higher prices for patients, according to researchers and health economists.

St. Louis-based BJC Healthcare and Kansas City-based St. Luke’s Health System announced the merger earlier this year but plan to maintain their own headquarters, location and branding. The Federal Trade Commission will need to approve the $10 billion merger for it to go through.

Officials from the two health systems said in statements they expected the merger to “enhance the affordability of patient care.” But health analysts who study health care mergers said such deals have a record of raising prices for patients.

“[In] cross-market mergers within the same state like this, the empirical research shows that, on average, they lead to higher prices,” said Chris Garmon, a health administration professor at University of Missouri-Kansas City who studies health company mergers. “And on balance — although the evidence is mixed — quality, if anything, seems to go down after a merger of competing hospitals. But it could improve with this particular merger.”