Patrick Administration Examines
Hospital Pay Disparities
A new report from Governor Deval Patrick’s administration confirms previous findings that hospitals are paid widely varying amounts for providing similar care. The administration also found that the more expensive hospitals treat a high percentage of patients, creating a double hit on insurers and on employers and employees who pay the premiums.
The Patrick administration’s report also found no connection between how many Medicaid patients a hospital treats and the prices it charges insurers, contradicting the assertion by some hospitals that the higher fees they receive from private insurers are needed to offset losses from low Medicaid payments.
The governor recently proposed legislation that would allow the insurance commissioner to scrutinize contracts setting the amounts insurers pay hospitals and doctors and reject health insurance premium increases based on excessive fees for providers.
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