Some hospitals are 1.5 to 2.7 times more expensive than the lowest-priced hospitals within the same region of New York State, according to a new study drawing from nonpublic data from health insurers and negotiated contracts with New York State hospitals. The study – Why Are Hospital Prices Different? An Examination of New York Hospital Reimbursement – funded in part by the New York State Health Foundation (NYSHealth) analyzed data for 107 hospitals and 9 insurers over 3 study regions of New York: Downstate, Buffalo, and Albany. A hospital’s market leverage—its bargaining power when negotiating with insurers—is a key factor in the prices a hospital can command. Hospitals with high prices do not necessarily have higher quality scores and those with lower prices do not necessarily have lower quality scores. The study also found certain contract provisions that impede health care competition and transparency for consumers.
- Study: Why Are Hospital Prices Different? An Examination of New York Hospital Reimbursement. New York State Health Foundation
- Press release: http://nyshealthfoundation.org/news-events/news/hospital-prices-vary-widely-associated-with-market-power