This reminds me of the famous anti trust suit that the US started against GE and Westinghouse. They were colluding and rigging the price of gov't bids to decide who got which contract by the phase of the moon. I truly feel that both insurers and healthcare providers collude to milk the consumer. If it were true that having multiple hospitals in an area should lead to lower prices (ie competition), then medical costs should go down. But the simple fact that it does not matter if I go to hospital A or B the price is pretty much the same, indicates that either they are colluding or the fixed costs are the same (which I highly doubt, otherwise why would the second hospital been built).
Anecdotal evidence of this is when I went for my gallbladder surgery. It was not emergency surgery, but was necessary due to very large gallstones. My surgeon happens to have privileges at several local hospitals owned by different corporations, so I shopped around the price. The total cost difference on the surgery between them was about $200. Now on a $10K surgery that difference is 2%, tell me that is not collusion.