The health care industry is the only major industry in the United States that is granted a monopoly without strict governmental oversight. Unlike power companies there is no Kentucky Public Service Commission to sent standards and charges.  In fact, there are very few governmental regulations to assure hospital quality and non-to protect the consumer from excessive charges. 

Both the banking and airline industry have been deregulated.  Airline executives  are probably laughing at the argument that duplication of costly medical services dose not save consumers cost when they have no assurance for passengers on their 200 million dollar jumbo jets.  At the same time they like the rest of us are paying progressively higher health care costs. 

In Kentucky, some counties are not able to afford a cafeteria in their high school but have high health care costs and excessive charges delivered by hospitals with rural monopolies.

Do Some For-Profit Hospital Corporations Target Rural Areas With Little Competition ??

Here is what one SEC 10-K Report Stated (LifePoint Corporation filed For Fiscal Year December 31, 2004) :   View Report

We believe that non-urban healthcare markets are attractive because of the following factors:
Less Competition. Non-urban communities have smaller populations with fewer hospitals and other healthcare service providers. We believe that the smaller populations and relative significance of the hospital in these markets may lessen the likelihood of the entry of alternate non-hospital providers, including outpatient surgery centers, rehabilitation centers and diagnostic imaging centers.

Here is what one SEC 10-K Report Stated  (LifePoint Corporation filed for fiscal year December 31, 2005)
View Report

We believe that non-urban healthcare markets are attractive because of the following factors:
Less Competition than Urban Markets. Because non-urban communities have smaller populations, they generally have fewer hospitals and other healthcare service providers. Additionally, because non-urban hospitals are generally sole providers or one of a small group of providers in their markets, there is limited competition.  However, we are experiencing an increase in competition from other specialized care providers, including outpatient surgery, oncology, physical therapy and diagnostic centers, as well as competing services rendered in physician offices.  

Here is what one SEC 10-K Report Stated (Community Health Systems Corporation filed For Fiscal Year December 31, 2005) :  View Report

We target hospitals in growing, non-urban healthcare markets because of their favorable demographic and economic trends and competitive conditions. Because non-urban service areas have smaller populations, there are generally fewer hospitals and other healthcare service providers in these communities and generally a lower level of managed care presence in these markets. We believe that smaller populations support less direct competition for hospital-based services. Also, we believe that non-urban communities generally view the local hospital as an integral part of the community.