MADISON – A new report from the CROWE Center at UW–Madison found that Wisconsin’s hospital market has become increasingly concentrated. The report highlights another alarming trend in Wisconsin’s healthcare affordability crisis, where rising costs continue to put pressure on family budgets, employers, and the state’s overall economic competitiveness.
The report analyzed inpatient hospital discharges between 2018 and 2025 to measure the level of hospital market concentration across Wisconsin, a metric commonly used to assess competition in the industry. Researchers found that seven of Wisconsin’s eight hospital referral regions are now considered highly concentrated and that every region became more concentrated during the study period. Researchers concluded that the majority of the increase in concentration was driven by mergers and ownership changes rather than patient choice.
The CROWE report adds to a growing body of research showing Wisconsin’s healthcare market continues to become more dominated by large health systems. Wisconsin has experienced an increase in hospital and physician practice mergers, leading to more physician-hospital affiliations and in-system referrals, both of which tend to be more costly than independent practices.
“Wisconsin’s healthcare trends should concern every family and employer in the state,” said WMC Associate Vice President of Government Relations Rachel Ver Velde. “When patients and employers have fewer options, prices rise. Less competition contributes to an already unaffordable healthcare market.”
Additionally, the new report adds to growing evidence that Wisconsin’s healthcare market is failing patients and employers. Combined with previous CROWE research showing Wisconsin hospital prices are 26 percent higher than those in Illinois, the findings add urgency to reforms that promote competition, increase transparency, and help bring down healthcare costs.
Wisconsin’s healthcare affordability crisis by the numbers:
- Wisconsin has the second-highest overall healthcare costs in the nation.
- Wisconsin’s hospital costs rank fourth-highest nationally.
- Wisconsin has the nation’s highest medical payments under workers’ compensation.
- 93% of Wisconsin employers reported healthcare cost increases this year.
- 96% of employers support stronger hospital price transparency requirements.
“Healthcare remains one of the only major purchases consumers make without knowing the price beforehand,” Ver Velde continued. “As costs continue to climb, Wisconsin should advance meaningful healthcare price transparency reforms that empower patients, strengthen competition, and bring much-needed accountability to the healthcare marketplace.”
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