The National Alliance of Healthcare Purchaser Coalitions (National Alliance) has released a groundbreaking resource titled, “Setting the Record Straight: The Urgency of Achieving Hospital Fair Price”. This comprehensive report aims to debunk the top 10 myths circulating in the hospital industry regarding high healthcare costs.
Hospital prices are a leading factor in the escalating healthcare expenses faced by American families and businesses. In order to support employers and other healthcare purchasers in their efforts to demand fair hospital prices, the National Alliance developed this resource. The report aims to provide accurate information and dispel misconceptions surrounding hospital pricing.
Among the myths addressed in the report, the lack of correlation between hospital prices and the actual cost of care is a key focus. Additionally, the report challenges the notion that the blame for rising costs lies solely on workforce staffing shortages. It also highlights the detrimental impact of industry consolidation and the absence of market competition on hospital prices.
Michael Thompson, President and CEO of the National Alliance, emphasizes the importance of hospitals working in good faith to negotiate fair prices with employers and plan sponsors. The resource calls for hospitals to prioritize their patients by ensuring affordable healthcare coverage, as more than 70% of workers depend on employers for this essential benefit.
The National Alliance’s Hospital Fair Price initiative, of which this resource is a part, seeks to leverage transparency data and the collective market buying power of regional coalitions and employer-purchaser members. By working together, they aim to level the playing field in a highly consolidated hospital market. These committed stakeholders are also actively engaging with policymakers and other healthcare influencers to demand action and bring about fair prices for all Americans.
Data reveals that a fair price for patients with private insurance is typically 140%-200% of what Medicare pays for the same services at the same facilities. However, some hospitals charge significantly more, with markups exceeding 500% over Medicare rates. The resource emphasizes the need for a reasonable markup from costs and a price that is competitive with peer hospitals.
The National Alliance expresses gratitude for the support received from Arnold Ventures, as well as their industry partners, the National Academy for State Health Policy (NASHP), RAND Corporation, and Rice University. The collaboration of these organizations has contributed invaluable technical expertise in the creation of the resource.
The Hospital Fair Price initiative has enlisted the participation of various regional coalitions and partner organizations, including the Connecticut Business Group on Health, Greater Philadelphia Business Coalition on Health, and Washington Health Alliance, among others. Together, these coalitions are working tirelessly to demand fair pricing and advocate for policies that equip employers with the necessary tools to achieve equitable healthcare costs.
The National Alliance of Healthcare Purchaser Coalitions is a nonprofit organization dedicated to driving health and healthcare value across America. Their members represent a wide range of organizations, including public and private sectors, nonprofits, and Taft-Hartley organizations. With over 45 million Americans and a healthcare spending of over $400 billion annually, the National Alliance plays a leading role in improving healthcare accessibility and affordability.
Sources:
National Alliance of Healthcare Purchaser Coalitions
Setting the Record Straight: The Urgency of Achieving Hospital Fair Price
