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Monopsony Power in the Hospital Labor Market

BY and | May 14, 2025

This paper first reviews the economics literature that analyzes the impact of employer consolidation on healthcare labor markets, with a focus on monopsony power over markets for registered nurses —…

This paper first reviews the economics literature that analyzes the impact of employer consolidation on healthcare labor markets, with a focus on monopsony power over markets for registered nurses — where employers can suppress wages or worsen working conditions due to limited competition for workers. Early studies yielded mixed results, with some showing negative correlations between wages and employer concentration, while others found little evidence of monopsony effects. The paper describes

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