Wide price variation in hospital prices for the care that they render-up to a 2.7-fold difference-is driven by the hospital's market leverage, according to a new report by the New York State Health Foundation (NYSHealth).
Wide price variation in hospital prices for the care that they render—up to a 2.7-fold difference—is driven by the hospital’s market leverage, according to a new report by the New York State Health Foundation (NYSHealth).
The study was commissioned by NYSHealth in an attempt to understand the various factors that influence the rapidly rising healthcare costs in the state of New York, which in turn translate into rising health insurance premiums. The study team delved deep into understanding hospital contracting practices, reimbursement methods, and hospital prices in the state by using data provided by 9 private commercial insurers for 107 hospitals in 3 regions in New York: Downstate, Albany, and Buffalo. While the team analyzed private commercial prices only, the influence of revenue from a public payer on a hospital’s revenue was considered.
The following are key findings of the report:
After considering these findings, the authors of the report have made certain policy recommendations to help amend the observed discrepancy in hospital prices: