Washington, D.C. – August 1, 2023 – Anti-competitive behavior from hospital systems is leading to higher health care costs for Americans, and it’s time for Congress to take action, according to an op-ed in The Hill.
When a hospital system acquires a physician’s office, for example, prices increase on average by 14%, and prices at hospitals with no competition are 12% higher than in markets with 4 or more, according to the op-ed from Michael Thompson, president and CEO of National Alliance of Healthcare Purchaser Coalitions and Tom Lussier, administrator of the Public Sector Health Care Roundtable.
One potential solution for lowering costs is site neutral payment reform, which could reduce cost-sharing and premiums by more than $470 billion over 10 years, the op-ed said. Patients shouldn’t pay more for the same service furnished with the same quality of care simply because a hospital owns their physician’s office.
This op-ed adds to a groundswell of support for site neutral payment legislation, including op-eds in the Washington Examiner and the Wall Street Journal.
It’s time for Congress to focus on solutions that hold hospital systems accountable for their prices. Passing site neutral payment legislation will help provide all Americans with more health care choices and better quality at lower costs.
Click here for more information on how AHIP is working to boost health care competition.