As multi-hospital kidney exchange has grown, the set of players has grown from patients and surgeons to include hospitals. Hospitals can choose to enroll only their hard-to-match patient-donor pairs, while conducting easily arranged exchanges internally. This behavior has already been observed.We show that as the population of hospitals and patients grows, the cost of making it individually rational for hospitals to participate fully becomes low in almost every large exchange pool (although the worst-case cost is very high), while the cost of failing to guarantee individual rationality is high-in lost transplants. We identify a mechanism that gives hospitals incentives to reveal all patient-donor pairs. We observe that if such a mechanism were to be implemented and hospitals enrolled all their pairs, the resulting patient pools would allow efficient matchings that could be implemented with two-and three-way exchanges.We have had valuable conversations about this paper with Itay Fainmesser, Duncan Gilchrist, Jacob Leshno, and Mike Rees, and have benefited from comments by participants at the NBER Market Design conference and the Harvard-MIT Economic Theory seminar. We also thank the editor and three anonymous referees for helpful comments.1 This was the case in the labor market for gastroenterologists. What had been a national marketplace collapsed into a set of small local marketplaces in which gastroenterology fellowship positions were increasingly filled by local candidates, often from the same hospital (see Niederle and Roth 2003). To repair