By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    benefits of using protein powder to build muscles
    Protein Powder for Muscle Mass: Everything You Need to Know
    December 12, 2021
    changes brought on by blockchain in healthcare
    Technology In The Healthcare Industry
    March 28, 2022
    What Does Core Body Temperature Say About Health?
    August 17, 2022
    Latest News
    Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
    May 16, 2025
    Learn how to Renew your Medical Card in West Virginia
    May 16, 2025
    Choosing the Right Supplement Manufacturer for Your Brand
    May 1, 2025
    Engineering Temporary Hospitals for Extreme Weather
    April 24, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    FDA Approves Diabetes Pill
    May 2, 2011
    Patient Gets Drunk on Hand Sanitizer
    June 20, 2011
    Cultivating Health Improvement
    July 20, 2011
    Latest News
    Building Smarter Care Teams: Aligning Roles, Structure, and Clinical Expertise
    May 18, 2025
    The Critical Role of Healthcare in Personal Injury Recovery: A Comprehensive Guide for Victims
    May 14, 2025
    The Backbone of Successful Trials: Clinical Data Management
    April 28, 2025
    Advancing Your Healthcare Career through Education and Specialization
    April 16, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Sky-High Hospital Prices: A Result of Government Interference
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Finance > Sky-High Hospital Prices: A Result of Government Interference
BusinessFinanceHospital AdministrationPolicy & LawPublic Health

Sky-High Hospital Prices: A Result of Government Interference

John Graham
Last updated: December 17, 2013 9:11 am
John Graham
Share
3 Min Read
dollarshc
SHARE

Despite its editorial position in favor of more government control of people’s access to medical care, the New York Times has an excellent track record of journalism covering the real problems in U.S. health care.

Despite its editorial position in favor of more government control of people’s access to medical care, the New York Times has an excellent track record of journalism covering the real problems in U.S. health care. A fine example is Elisabeth Rosenthal’s report last Monday (“As Hospital Prices Soar: A Stitch Tops $500″, December 2, 2013) on outrageous hospital prices, including $500 for a single stitch.

dollarshcShe identifies something that we don’t hear from hospitals themselves: Emergency rooms are profit centers. And we are not talking about rocket surgery: As Rosenthal notes, stitching a wound with needle and thread ― a procedure undertaken since antiquity – routinely leads to a charge of over $1,500.

Rosenthal filed her story from San Francisco. California requires hospitals to file all their charges for procedures (the “chargemaster”) with the Office of Statewide Health Planning and Development (OSHPOD), which publicizes them. Many observers believe that the state forcing hospitals to publicize prices will lead to price reductions. However, this is a misdiagnosis: Addressing the symptoms and not the cause.

More Read

Image
The Geographic Divide: How Federalism Has Formalized Health Disparities
UPDATED POST: Salami Tactics and IRS 501(r)
Health Wonk Review: The New Wright on Health Edition
23andMe Suspends Genetic Testing During Review Process
Aetna and CVS Brand a Prescription Drug Plan

Rosenthal herself succumbs to the erroneous notion that hospitals gouge uninsured patients the most because they don’t have insurers to “argue” fees on their behalf.  To be sure, insurers regularly pay hospitals about one third of charges invoiced. However, it cannot be true that consumers need insurers to negotiate for us, because we don’t use them to “argue” with Amazon.com, Wal-Mart, or Office Depot about prices they charge. Indeed, those firms achieved market dominance by combining convenience and low prices.

Uninsured patients go through emotional pain when they receive ER invoices, but rarely financial pain. Research (full text by subscription) from California demonstrates that uninsured patients paid only 28 percent of hospitals’ billed charges in 2004-2005. However, this does not mean that each uninsured patient paid 28 percent of her bill. Rather, the statistical distribution suggests that a small proportion of uninsured patients paid a high share of their charges, and most pay a tiny share (if any).

Nevertheless, it is necessary for hospitals to go through the charade of trying to collect high fees from uninsured patients, before writing the costs off to charity care, because Medicare regulations force them to do so. If hospitals do not try to collect from uninsured patients, the government accuses them of giving them a bigger discount than they give to Medicare, and claws back Medicare payments.

Government interference has led to perverse malformation of hospitals’ incentives to treat uninsured patients.

Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

Do You Grind Your Teeth at Night? Here’s How Night Guards and TMJ Treatments Can Help
Do You Grind Your Teeth at Night? Here’s How Night Guards and TMJ Treatments Can Help
Dental health
May 21, 2025
The Secret To A Confident Smile: Top Tips For Better Teeth
The Secret To A Confident Smile: Top Tips For Better Teeth
Dental health
May 21, 2025
Clinical Expertise
Building Smarter Care Teams: Aligning Roles, Structure, and Clinical Expertise
Health care
May 18, 2025
Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
Health
May 15, 2025

You Might also Like

Taliban’s New Weapon: Childhood Vaccination

December 20, 2012
BusinessNewsPublic HealthTechnology

Thermalin Diabetes Follows the “Coulter Process” And Addresses Significant Needs in the Insulin Market

December 27, 2011

Frugal Medicine – What Indian Doctors Can Teach the US Healthcare System

August 22, 2012

Bigger Carrots and Painful Sticks to Improve Medication Adherence

November 17, 2011
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?