Hospital Costs are Crushing American Families. It’s Time to Take Action.

America is slowly but surely going broke struggling to keep up with annual increases in healthcare costs with no end in sight.

Over the past two decades, health care spending in the United States has surged, nearly doubling in real terms from $2.5 trillion in 2000 to $4.5 trillion in 2023. American consumers and businesses are being crushed by the weight of out-of-control costs with no apparent end in sight, imperiling the budgets of every family, employer, and government in America.

(Image Credit to Bureau of Labor Statistics)

America is on an unsustainable path of healthcare costs that are rising so rapidly it threatens the very health of the American economy. This path cannot continue.

Hospital Costs Are Out of Control– Here’s Why:

1. Lack of Transparency in Pricing

Despite federal efforts to improve price transparency, most patients remain unaware of procedure costs until the bill arrives – often filled with unexpected charges. Without clear pricing, patients can’t make informed healthcare decisions, and hospitals face little pressure to keep costs fair or competitive. This lack of accountability encourages inflated prices, leaving consumers with fewer choices and higher bills.

For example: A hospital may charge $50 for a single Tylenol pill or $10,000 for a procedure that costs a fraction of that elsewhere—without explanation.

Despite a number of state efforts to address hospital price transparency, the issue remains a key driver of rising healthcare costs in America. New Jersey, Connecticut, and Rhode Island are just a few examples of states that introduced transparency guidelines aimed at reducing cost-growth, but hospitals have refused to comply.

For more information on price transparency, visit A Strong Economy Starts with Healthcare Patients Can Afford.”

2. Hospital Consolidation = Higher Prices for Patients

As hospitals merge and acquire competitors, they gain more control over pricing, leaving patients and insurers with fewer choices and higher costs. Instead of driving efficiency, these mega-systems often lead to monopolies that pass inflated prices on to consumers.

The Reality:

• From 2000 to 2020, there were more than 1,000 hospital mergers among the approximately 5,000 hospitals in the United States.
• Studies show that prices for hospital services jump 12-25% after a merger.

(Image credit to KFF.org)

3. Hospitals Prioritize Profits Over Patients

The majority of hospitals in the US (nearly two-thirds) are nonprofit. Yet, despite their nonprofit status, many of these hospitals operate like for-profit businesses — maximizing revenue instead of patient outcomes. Executive salaries soar while patients continue to face outrageous medical bills.

For Example:

• Many “nonprofit” hospitals receive billions in benefits but provide the least amount of charity care.
• CEO compensation at major nonprofit hospital systems now tops $1 million, on average. And, their salaries keep rising.

4. Insufficient Oversight & Enforcement of Cost-Saving Programs

Programs designed to make healthcare more affordable — like the 340B Drug Pricing Program and charity care programs — are often misused, benefiting hospitals more than patients.

The Issues:

• The 340B program allows hospitals to buy drugs at steep discounts but doesn’t require them to pass the savings on to patients.
• Nonprofit hospitals receive massive tax breaks in exchange for providing charity care. Yet, insufficient oversight allows hospitals to prioritize profits over helping those in need.

For more information on 340B, visit “How Hospitals Profit from the 340B Program”

How Can You Make a Difference?

• Call State Offices: Contact your state representatives to demand stronger price transparency laws, stricter oversight of hospital mergers, and more clearly defined requirements for healthcare cost-saving programs.
• Support Advocacy Groups: Join and/or donate to organizations that are fighting for affordable healthcare. Your support can help amplify the movement and push for meaningful policy changes.
• Raise Awareness
  • Have you been personally impacted by your hospital’s unfair pricing strategies? Share your story and talk to your community about the impact of transparency, hospital mergers, and insufficient oversight on hospital costs.
    
    

In the News:

• PRESS RELEASE: More than 1,900 nonprofit hospitals receive more in tax breaks than they give back to their community, totaling billions – Lown Institute
• New Jersey hospitals exploit 340B at the expense of patients. We have to fix it | Opinion
• Not All Selected Hospitals Complied With the Hospital Price Transparency Rule | Office of Inspector General
• New Report: Are PA Hospitals Complying with Transparency Rules? – Pennsylvania Health Access Network
• New Jersey’s hospital tax breaks need to go. This is why | Opinion
• New Report shows more than 75% of hospitals still not complying with Hospital Price Transparency Rule — PatientRightsAdvocate.org
• Hospital mergers and health care price increases: A primer for reporters
• Bigger But Not Better: Hospital Mergers Increase Costs and Do Not Improve Quality
• If patients aren’t benefiting from the 340B program, who is? | PhRMA
• How a Hospital Chain Used a Poor Neighborhood to Turn Huge Profits – The New York Times