Hospital News – APRA https://www.americanpatient.org American Patient Rights Association Mon, 24 Feb 2025 15:31:04 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 https://www.americanpatient.org/wp-content/uploads/2018/07/favicon-APRA1-150x150.png Hospital News – APRA https://www.americanpatient.org 32 32 Look Up Your Hospital: Is It Being Penalized For Being Unsafe? https://www.americanpatient.org/the-list-of-hospitals-facing-2021-penalties-for-harming-patients/?utm_source=rss&utm_medium=rss&utm_campaign=the-list-of-hospitals-facing-2021-penalties-for-harming-patients Fri, 08 Apr 2022 13:36:51 +0000 https://www.americanpatient.org/?p=58969 Health Care Paradox: Medicare Penalizes Dozens of Hospitals It Also Gives Five Stars https://www.americanpatient.org/health-care-paradox-medicare-penalizes-dozens-of-hospitals-it-also-gives-five-stars/?utm_source=rss&utm_medium=rss&utm_campaign=health-care-paradox-medicare-penalizes-dozens-of-hospitals-it-also-gives-five-stars Sat, 05 Mar 2022 17:47:32 +0000 https://www.americanpatient.org/?p=59209 Refusal of Emergency Care and Patient Dumping https://www.americanpatient.org/refusal-of-emergency-care-and-patient-dumping/?utm_source=rss&utm_medium=rss&utm_campaign=refusal-of-emergency-care-and-patient-dumping https://www.americanpatient.org/refusal-of-emergency-care-and-patient-dumping/#respond Sun, 16 Jan 2022 18:26:42 +0000 https://www.americanpatient.org/?p=59059 Read More]]> By Jeffrey Kahntroff and Rochelle Watson, AMA Journal of Ethics, Jan. 2009. 

Gabino Olvera is a 42-year-old man who is mentally ill, paraplegic, and homeless. He was dropped off by Hollywood Presbyterian Medical Center in a soiled hospital gown with a catheter bag and no wheelchair in a neighborhood populated by many other homeless people [1]. Carol Ann Reyes, an elderly woman suffering from dementia, was dropped off by Kaiser Permanente Bellflower Medical Center in front of Union Rescue Mission, an organization that serves the needy and homeless, wearing just a hospital gown [1]. This practice is known as “patient dumping.”

Patient dumping violates the federal Emergency Medical Treatment and Active Labor Act (EMTALA). Enacted in 1986, EMTALA seeks to prevent any refusal of care for patients who are unable to pay [2]. It imposes three requirements on any Medicare-participating hospital and enforces monetary sanctions against physicians or hospitals that do not comply [3]. Participating hospitals must: (1) conduct medical-screening examinations, (2) provide necessary stabilizing treatment to any patient seeking emergency medical care in an emergency department, and (3) hospitals that are unable to do (1) and (2) may transfer the patient to a facility that can provide those services in a manner that accords with EMTALA guidelines [4].

To establish a violation of EMTALA, “a plaintiff must demonstrate that (1) the hospital is a Medicare-participating hospital covered by EMTALA that operates an emergency department (or an equivalent treatment facility); (2) the patient arrived at the facility seeking treatment; and (3) the hospital either (a) did not afford the patient an appropriate screening to determine whether he or she had an emergency medical condition, or (b) bade farewell to the patient (whether by turning away, discharging, or improvidently transferring him or her) without first stabilizing the emergency medical condition” [5]. Forty-three of the 50 states have adopted statutes similar to the federal requirements [6-9].

Despite these statutes and penalties, hospitals have continued turning patients away. From 1996 to 2000, the watchdog organization Public Citizen confirmed violations from 527 hospitals in 46 states, as well as the District of Columbia and Puerto Rico [10]. Of the 527 hospitals, 117 had violated the act more than once, and for-profit hospitals were significantly more likely to do so [10].

EMTALA’s inability to curb denial of treatment has been attributed to the ambiguity of the statutory provisions, poor enforcement mechanisms, and divergent judicial interpretations of the statutory provisions. A 2001 Office of the Inspector General (OIG) study revealed that emergency-care personnel and hospital staff are often unaware of EMTALA provisions and policy changes, and, even when they are aware, there is uncertainty about the proper interpretation and application of the provisions [11]. Furthermore, most emergency personnel do not receive EMTALA guidelines [11].

Lack of uniformity in enforcing the provisions also contributes to their ineffectiveness. Some hospitals have a greater chance of being investigated than others, not because they are more prone to violate EMTALA terms, but because they are geographically closer to Centers for Medicare & Medicaid Services (CMS) regional offices [11]. The EMTALA enforcement process fails to notify hospitals that are at risk for violating the proper standard of care, and regional CMS offices often don’t inform state survey agencies, hospitals, and peer-review organizations about their decisions [11]. Thus, statistics on violations are often inconsistent and incomplete.

Judicial decisions have also produced conflicting interpretations of what emergency personnel must do to comply with EMTALA. The EMTALA requirement that emergency personnel provide appropriate medical screening within the capability of the emergency department, for example, can be interpreted under an objectively reasonable standard, subjective standard, or burden-shifting standard [12-14]. There is discrepancy about whether physicians should be held to the negligence standard of care customary in the medical field, or whether EMTALA is governed by a strict liability standard [15]. Finally, disagreement persists over whether the three duties imposed on medical personnel—to provide an appropriate medical screening examination, to stabilize, and to appropriately transfer patients—are separate duties that should be considered individual causes of action under law or whether they should be viewed conjunctively [16, 17]. The divergent standards of judicial interpretation further hamper EMTALA’s effectiveness by creating inconsistent standards of compliance. Emergency personnel are not able to comply with EMTALA provisions because it is not clear what exactly is required of them, and case law has only exacerbated the problem.

Despite EMTALA’s shortcomings, the statute is not without bite. The OIG recorded eight violations of EMTALA in November 2008 [18]. Baptist Hospital, Inc., in Florida, agreed to pay $22,500 to settle allegations that it failed to perform a medical screening on a suicidal man. After informing the registrar that his suicidal thoughts were growing stronger, the patient was informed that he would have to continue to wait—he then proceeded outside and lacerated his right arm [18]. Cumberland County Hospital System, Inc., in North Carolina, agreed to pay $42,500 to settle claims that it unsuccessfully provided appropriate medical screening or stabilized a suicidal 13-year-old girl. The physician saw the patient for 5 minutes before releasing her. Fifty minutes later, the patient jumped out of a car traveling approximately 40 miles per hour and fractured her skull [18].

Recent cases in Los Angeles demonstrate that the threat of large fines might deter the practice of patient dumping under state law. The Los Angeles City attorney secured a settlement with Methodist Hospital amid allegations of patient dumping that required the hospital to implement detailed protocols for the discharge of homeless patients. The hospital will also contribute $215,000 to fund recuperative care beds for homeless individuals at the Salvation Army’s Bell Shelter and pay $5,000 in civil penalties and $20,000 in investigative costs [19]. Kaiser Hospital reached a similar agreement in May 2007, resulting in court-ordered protocols for the proper discharge of homeless patients, as well as $500,000 in donations to a charitable foundation that offers services to the homeless and $5,000 in civil penalties [19].

In response to recent incidents in California, Los Angeles passed a city ordinance that prohibits transporting or arranging for the transport of patients to somewhere other than their home without their written consent [20]. A violation of the ordinance warrants a $25,000 penalty for the misdemeanor and the suspension of the hospital’s Medicare finding for at least 5 years [20].

The underfunded health care system in the United States drives the practices of patient dumping and refusal of care. Caring for patients who do not have insurance is costly, and much of the treatment often goes without reimbursement. From 1994 to 2005, the number of emergency department visits increased 18 percent from 93.4 million to 110.2 million annually, a rate that coincided with the rising costs of care and lower reimbursement by managed-care organizations and other payers, including Medicare and Medicaid [21]. The trend disproportionately affects low-income patients, who generally do not have access to health care and often seek it in emergency rooms. In response to the rising costs of medical care, states have implemented a series of measures directed at lowering costs, including reductions in Medicaid eligibility, benefits, and provider payments [22]. As Clay Mickel, spokesman for the American Hospital Association, stated, “The real problem is that the government has not acknowledged that caring for the indigent is its responsibility” [23]. The solution to patient dumping may lie in addressing its root causes rather than strengthening the enforcement mechanisms in EMTALA and similar state statutes.

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Top Hospitals Charging Patients up to 1,800% More for Services Than They Cost https://www.americanpatient.org/top-hospitals-charging-patients-up-to-1800-more-for-services-than-they-actually-cost-study/?utm_source=rss&utm_medium=rss&utm_campaign=top-hospitals-charging-patients-up-to-1800-more-for-services-than-they-actually-cost-study Tue, 24 Nov 2020 14:40:48 +0000 https://www.americanpatient.org/?p=12320 Read More]]>

The leading nurses union says the study highlights the need for a Medicare for All system to limit high markups

By IGOR DERYSH, NOVEMBER 22, 2020, For Salon.
Hospitals in the United States charge patients as much as 1,800% more than their costs amid the coronavirus pandemic, according to a new study.The 100 most expensive hospitals in the United States charge between $1,129 and $1,808 for every $100 of their costs, according to a study by National Nurses United, the largest nurses union in the country.Overall, hospitals across the US charge an average of $417 for every $100 of their costs. The average markup has more than doubled over the past two decades, according to the report.The markups have resulted in hospital profits skyrocketing by 411% from 1999 to 2017, hitting a record $88 billion.

“The rise in charges coincides with growing hospital mergers and acquisitions by large systems,” the union said in a news release. “The result is increased market consolidation, which leads to higher profits and increased charges, not savings for patients as hospital systems often claim.”

Medical workers worry that high costs will increase the number of people avoiding medical care.

“There is no excuse for these scandalous prices. These are not markups for luxury condo views, they are for the most basic necessity of your life: your health,” nurse Jean Ross, the president of the union, said in a statement. “Unpayable charges are a calamity for our patients, too many of whom avoid— at great risk to their health — the medical care they need due to the high cost, or they become burdened by devastating debt, hounded by bill collectors or driven into bankruptcy.”

The union warned that “high hospital charges also drive up Covid-19 treatment costs.”

A study by the health care data nonprofit FAIR Health in the spring found that uninsured coronavirus patients or those that receive care considered out-of-network by their insurer face costs ranging from $42,486 to $74,310 if they require inpatient hospital treatment.

A survey by the health care research group the Commonwealth Fund also found that more than two-thirds of Americans say that “potential out-of-pocket costs would be very or somewhat important in their decision to seek care if they had symptoms of the coronavirus.”

While insurers often negotiate prices with hospitals, uninsured patients have little recourse. And as with other health care and coronavirus-related disparities, people of color are disproportionately impacted. Latinos are nearly three times as likely and Black people are nearly twice as likely to be uninsured than white Americans, according to a study from the Kaiser Family Foundation.

The National Nurses United report argued that the findings further make the case for a Medicare for All system because Medicare is the “most effective” system to limit price gouging.

“The most viable solution to slowing the growth in hospital charges and the continued inflation of hospital prices, is to bring all health care purchasers together, under a public, nationwide single-payer plan,” the report said.

The RAND Corporation, a nonprofit think tank, found that hospitals charged private insurers an average of 2.4 times more than Medicare rates.

“Nurses know that the best way to rein in these outrageous charges that create such grievous harm for our patients is with Medicare for All, as other countries have proven,” said Ross, the union president. “Medicare for All will not only guarantee health care coverage for every person in the United States, it will end medical bankruptcies, medical debt lawsuits, and the health insecurity faced by millions who make painful choices every day about whether to seek the care they desperately need.”

Republicans like President Donald Trump and centrist Democrats like President-elect Joe Biden have forcefully pushed back on the idea of a single-payer health system, arguing that it would kick tens of millions of people off their employer-provided insurance and vastly increase the federal budget.

Hospitals have also argued that they lose money under Medicare.

“Medicare payment rates, which reimburse below the cost of care, should not be held as a standard benchmark for hospital prices,” Melinda Hatton of the American Hospital Association, an industry trade group, told The New York Times. “Simply shifting to prices based on artificially low Medicare payment rates would strip vital resources from already strapped communities, seriously impeding access to care.”

But the disparity between insurer and Medicare rates shows “market forces are clearly not working,” Richard Scheffler, a health economist at the University of California, Berkeley, told the outlet. “Prices vary widely and are two and a half times higher than Medicare payment rates without any apparent reason.”

Studies have repeatedly shown that single-payer systems vastly drive down the cost of health care, as they have in countries that have long had such systems.

A study published in the Annals of Internal Medicine earlier this year found that 34% of health care expenditures go toward administrative costs alone. The US spent about $2,497 per person on administrative costs in 2017, compared to $551 per person in Canada, which has a single-payer system. Switching to a single-payer system would drive down health care costs by $600 billion on administrative costs alone, according to the analysis.

“Americans spend twice as much per person as Canadians on health care. But instead of buying better care, that extra spending buys us sky-high profits and useless paperwork,” lead author Dr. David Himmelstein, a professor at the CUNY School of Public Health at Hunter College, said in a statement.

Another study published in The Lancet earlier this year found that Medicare for All would save the country about $450 billion per year while preventing more than 68,000 unnecessary deaths annually.

Lead researcher Dr. Alison Galvani, an epidemiologist and director of the Center for Infectious Disease Modeling and Analysis at Yale University, argued that Biden’s proposal to essentially expand Obamacare could actually increase costs compared to the Medicare for All plan that the president-elect decried during the primaries as too costly.

“Without the savings to overhead, pharmaceutical costs, hospital/clinical fees, and fraud detection, ‘Medicare for all who want it’ could annually cost $175 billion dollars more than status quo,” she told Newsweek. “That’s over $600 billion more than Medicare for all.”

An analysis published in PLOS Medicine of 22 single-payer studies showed that 19 of them “predicted net savings … in the first year of program operation and 20 … predicted savings over several years; anticipated growth rates would result in long-term net savings for all plans.”

Critics have argued that reducing costs by switching to a single-payer system would result in doctor shortages and the rationing of health care. But data shows that fewer than 1% of doctors have opted out of the existing Medicare and Medicaid programs, with nearly half of those being psychiatrists. Single-payer proponents also dismiss rationing claims, arguing that Americans are already effectively self-rationing due to sky-high costs, even for those with private insurance.

A Federal Reserve survey published last year found that about 25% of American “adults skipped necessary medical care in 2018 because they were unable to afford the cost.” Another survey found that 26% of Americans with diabetes have rationed their insulin, primarily due to the cost.

“It would be a missed opportunity for America to ignore lessons about universal coverage from other countries out of a fear that they ration health care more than we do,” researchers at the Commonwealth Fund warned in a report last year. “In reality, more people in the U.S. forgo needed health care because access to care is rationed through lack of access to adequate insurance or unaffordable services and treatments.”

IGOR DERYSH

Igor Derysh is a staff writer at Salon. His work has also appeared in the Los Angeles Times, Chicago Tribune, Boston Herald and Baltimore Sun.

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Medicare Fines Half of Hospitals for Readmitting Too Many Patients https://www.americanpatient.org/medicare-fines-half-of-hospitals-for-readmitting-too-many-patients/?utm_source=rss&utm_medium=rss&utm_campaign=medicare-fines-half-of-hospitals-for-readmitting-too-many-patients https://www.americanpatient.org/medicare-fines-half-of-hospitals-for-readmitting-too-many-patients/#respond Mon, 02 Nov 2020 16:08:04 +0000 https://www.americanpatient.org/?p=37637 Read More]]> By Jordan Rau, Kaiser Health News, Nov. 02, 2020.

Nearly half the nation’s hospitals, many of which are still wrestling with the financial fallout of the unexpected coronavirus, will get lower payments for all Medicare patients because of their history of readmitting patients, federal records show.

The penalties are the ninth annual round of the Hospital Readmissions Reduction Program created as part of the Affordable Care Act’s broader effort to improve quality and lower costs. The latest penalties are calculated using each hospital case history between July 2016 and June 2019, so the flood of coronavirus patients that have swamped hospitals this year were not included.

The Centers for Medicare & Medicaid Services announced in September it may suspend the penalty program in the future if the chaos surrounding the pandemic, including the spring’s moratorium on elective surgeries, makes it too difficult to assess hospital performance.

For this year, the penalties remain in effect. Retroactive to the federal fiscal year that began Oct. 1, Medicare will lower a year’s worth of payments to 2,545 hospitals, the data show. The average reduction is 0.69%, with 613 hospitals receiving a penalty of 1% or more.

Out of 5,267 hospitals in the country, Congress has exempted 2,176 from the threat of penalties, either because they are critical access hospitals — defined as the only inpatient facility in an area — or hospitals that specialize in psychiatric patients, children, veterans, rehabilitation or long-term care. Of the 3,080 hospitals CMS evaluated, 83% received a penalty.

The number and severity of penalties were comparable to those of recent years, although the number of hospitals receiving the maximum penalty of 3% dropped from 56 to 39. Because the penalties are applied to new admission payments, the total dollar amount each hospital will lose will not be known until after the fiscal year ends on July 30.

“It’s unfortunate that hospitals will face readmission penalties in fiscal year 2021,” said Akin Demehin, director of policy at the American Hospital Association. “Given the financial strain that hospitals are under, every dollar counts, and the impact of any penalty is significant.”

The penalties are based on readmissions of Medicare patients who initially came to the hospital with diagnoses of congestive heart failure, heart attack, pneumonia, chronic obstructive pulmonary disease, hip or knee replacement or coronary artery bypass graft surgery. Medicare counts as a readmission any of those patients who ended up back in any hospital within 30 days of discharge, except for planned returns like a second phase of surgery.

A hospital will be penalized if its readmission rate is higher than expected given the national trends in any one of those categories.

The industry has disapproved of the program since its inception, complaining the measures aren’t precise and it unfairly punishes hospitals that treat low-income patients, who often don’t have the resources to ensure their recoveries are successful.

Michael Millenson, a health quality consultant who focuses on patient safety, said the penalties are a useful but imperfect mechanism to push hospitals to improve their care. The designers of the penalty system envisioned it as a way to neutralize the economic benefit hospitals get from readmitted patients under Medicare’s fee-for-service payment model, as they are otherwise paid for two stays instead of just one.

“Every industry complains the penalties are too harsh,” he said. “if you’re going to tell me we don’t need any economic incentives to do the right thing because we’re always doing the right thing — that’s not true.”

Read the original article.  

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Nearly half of low-income communities have no ICU beds in their area https://www.americanpatient.org/nearly-half-of-low-income-communities-have-no-icu-beds-in-their-area/?utm_source=rss&utm_medium=rss&utm_campaign=nearly-half-of-low-income-communities-have-no-icu-beds-in-their-area Fri, 23 Oct 2020 00:47:04 +0000 https://www.americanpatient.org/?p=12086 Read More]]> By Juliet Isselbacher, STAT News, Aug 03, 2020.

As Covid-19 continues to strain the country’s hospital system, new research exposes a striking gap in access to ICU care from one community to the next.

The study, published Monday in Health Affairs, examined an area’s median household income compared to the number of ICU beds per 10,000 residents over 50 years old — the age cohort at greatest risk for Covid-19 hospitalization. Nearly half of the communities with a median income under $35,000 had no ICU beds at all in their ZIP code cluster, compared to only 3% of communities with a median income over $90,000.

The authors warn that the staggering scarcity of critical care services in low-income populations can exacerbate existing disparities seen in deaths due to Covid-19. Many low-income individuals are already at increased risk of infection because they are less likely to be able to work from home and may face more challenges in quarantining.

“What we find is that this low-income population is going to be doubly or triply hit,” said Genevieve Kanter, an assistant professor at the University of Pennsylvania Perelman School of Medicine and the first author of the study.

“Not only will there be higher infection rates, and worse outcomes due to underlying conditions, but also — once you get to the hospital — worse availability of the kind of care that you need,” she added.

In the earliest days after Covid-19 arrived in the U.S., confirmed cases were in people who had traveled to other parts of the world. But Kanter and her colleagues knew that if the virus were to start spreading locally, it might take a disproportionate toll on certain communities.

“What we saw coming down the pike was that eventually it was going to start hitting low-income populations,” she said.

The researchers wanted to prepare for that inevitability by taking formal stock of resources in those low-income areas. Gathering that data, they hoped, would arm policymakers with the information needed to protect the most vulnerable.

Now, with evidence of the disparities in ICU access, Kanter and her co-authors are urging state governments to step in and impose a patient transfer system to evenly distribute Covid-19 care among hospitals.

Another proposal: expand critical care capacity in low-income areas by temporarily outfitting procedural areas and other inpatient units with ICU beds, procured with emergency funds. The authors also suggested reconsidering the standard practice of transporting all patients to their nearest hospital, instead distributing those who are relatively stable to further locations with greater capacity.

“I do hope very much that people in state legislatures are paying attention to this,” said Nancy Beaulieu, a researcher in health care policy at Harvard Medical School who was not involved in the study.

The paper also found that this class-based disparity was far starker in rural areas than urban areas, a finding Beaulieu said was particularly notable.

“That’s a really important distinction because the health care delivery systems are very different in these areas. And the policy options for addressing disparities in these two types of areas are also likely to be quite different,” she said.

Beaulieu said researchers need to launch further studies into other disparities that affect low-income populations, such as a lack of access to specialists and fragmented coordination between speciality and primary care providers.

“Now that we have the attention on this issue, I think it’s very important to keep working at it and really come up with some actionable steps that we can take to improve the delivery systems,” she said.

Article link: https://www.statnews.com/2020/08/03/covid19-icu-bed-disparities/

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Many Hospitals Charge More Than Twice What Medicare Pays for the Same Care https://www.americanpatient.org/many-hospitals-charge-more-than-twice-what-medicare-pays-for-the-same-care/?utm_source=rss&utm_medium=rss&utm_campaign=many-hospitals-charge-more-than-twice-what-medicare-pays-for-the-same-care Tue, 22 Sep 2020 12:27:14 +0000 https://www.americanpatient.org/?p=11563 Read More]]>

By Sept. 18, 2020.

Hospitals across the country are charging private insurance companies 2.5 times what they get from Medicare for the same care, according to a new RAND Corporation study of hospital prices released on Friday.

In a half-dozen of 49 states in the survey, including West Virginia and Florida, private insurers paid three or more times what Medicare did for overnight inpatient stays and outpatient care.

“The prices are so high, the prices are so unaffordable — it’s just a runaway train,” said Gloria Sachdev, the chief executive of the Employers’ Forum of Indiana, a coalition that worked with RAND on the study. This year’s report expanded on the research the nonprofit organization conducted in 2019 on hospital prices in 25 states.

The study, which exposes the aggressive pricing by mega-hospital systems that have gained enormous market power through widespread consolidation, is sure to kick-start the debate over the U.S. health care system and the need to overhaul it.

While the pandemic caused losses for many hospitals, many of these big systems are sitting on large profit reserves, while also receiving some of the $175 billion in aid Congress allocated to make up for their costs and lost revenue.

Employers provide health insurance coverage for more than 153 million Americans. The companies and insurers in the study paid nearly $20 billion more than Medicare would have for the same care from 2016 through 2018, according to the RAND researchers.

The findings cast doubt on the ability of private employers and insurers to competitively purchase health care for workers and their families compared to the federal government, said Katherine Hempstead, a senior policy adviser at the Robert Wood Johnson Foundation, which helped fund the study. “You have this widening gap,” she said.

Proponents of a so-called public option seize on such price-gouging news to argue that creating a government health plan that could use its clout to demand lower prices would help bring down the cost of care.

“There’s a lot of energy behind the public option, and this is clearly one of the reasons,” said Dan Mendelson, the founder of Avalere Health, a Washington, D.C., consulting firm.

Employers say the proof of how much more they pay underscores the need for change. “The report lays out in stark terms what the employers have been dealing with for years,” said Elizabeth Mitchell, the chief executive of the Pacific Business Group on Health, a San Francisco group that represents employers and companies in the region. “If we want to keep a private market in U.S. health care, it has to function,” she said. “It’s really not functioning.”

A public option, distinct from the more controversial “Medicare for all” proposals that would do away with private insurance, has been embraced by Joseph R. Biden Jr., the Democratic presidential nominee. Democrats and even some Republicans seem open to the idea, according to a recent poll from the Kaiser Family Foundation.

Hospitals warn that they might not be able to function if they were paid Medicare rates. “There is certainly a cost shift, because the government knowingly underpays,” said Tom Nickels, an executive vice president for the American Hospital Association, a trade group. He warned that hospitals would lose billions of dollars in revenue. Some could be shuttered if forced to operate at lower Medicare payments.

“We cannot survive in that kind of the world,” he said, adding that many hospitals are struggling financially because of the pandemic. “To suggest cutting hospitals during a pandemic is outrageous.”

The report, which has data from the District of Columbia and every state but Maryland (because that state sets hospital rates), provides a sweeping view into the wide variation of prices paid by private insurers, which pay multiples of what Medicare does for a hospital stay or an M.R.I. “The magnitudes are quite eye-catching,” said Michael R. Richards, a health economist at Baylor University who reviewed the study.

The most costly hospital system in the nation from 2016 through 2018, according to the researchers, was John Muir Health in Walnut Creek, Calif., near San Francisco. Private insurers pay its hospitals four times what Medicare reimburses for care.

“We believe our private insurance payments are appropriate for the quality of care we provide in the market we serve,” the system said in a statement, noting that its loses money on Medicare patients.

In Indiana, Parkview Health, based in Fort Wayne, also remained one of the most expensive, charging private insurers in 2018 three times what Medicare paid for an overnight hospital stay and more than four times the Medicare rate for outpatient care. Employers pressured Anthem, the state’s largest insurer, to force Parkview to lower prices by threatening to drop it from the plan’s network.

The RAND data “predates Parkview’s new agreements with several major insurance companies and direct-to-employer partnerships,” as well as significant prices reductions for outpatient care, said Parkview’s chief executive, Mike Packnett, in a statement.

The RAND report also documents a wide variation in prices within the same hospital system. Mass General Brigham, formerly Partners Healthcare, was the most expensive system in Massachusetts, but Massachusetts General, one of its premier hospitals, charged private insurers nearly three times what Medicare paid in 2016 through 2018, compared to roughly two times for the system’s Newton-Wellesley Hospital, according to the study.

Variation in payments is the result of differences in the type and complexity of services offered, said a spokesman for the system, as well as its research and teaching responsibilities.

Well-known and well-respected hospitals like Mass General “are the hospitals within the system that are likely to get the highest prices,” said Christopher M. Whaley, one of the RAND authors.

In some markets, the lack of an alternative means employers have no room to negotiate, said Suzanne Delbanco, the executive director of Catalyst for Payment Reform, a nonprofit that works with businesses to develop new ways of paying for medical care. “In a market that is highly consolidated with no choices, it can be logistically infeasible,” she said.

The pandemic could make things worse as big hospitals scoop up struggling physician practices or their smaller competitors. In West Virginia, Mountain Health Network is made up of the 2018 merger of two hospitals, after Cabell Huntington acquired its competitor over the objections of federal officials. Cabell was one of the nation’s most expensive systems from 2016 through 2018, according to the study. Mountain Health now reportedly has its eyes on a local physician group. The network said it could not comment on the findings.

Some hospitals argue they charge more because they deliver better care, and there does seem to be some association. “What we see is quality and the ability to charge high prices are intrinsically related,” said Craig Garthwaite, a health economist at the Kellogg School of Management at Northwestern University, who says some hospitals may be taking the extra money to invest in ways of improving quality.

Employers have had mixed success in pushing back against high-priced hospitals. Indiana employers succeeded in pressuring Anthem to take action, according to Ms. Sachdev. The insurer threatened to drop Parkview from its network, before reaching an agreement in July in which the hospital offered significant savings. Two state employees’ plans, in Montana and Oregon, have also been able to negotiate contracts that use Medicare prices as a benchmark for what they will pay, according to the RAND researchers.

But in other areas, the hospitals have been less willing to budge. In Colorado, employers have had productive discussions with some of the specialty hospitals and independent hospitals, said Robert J. Smith, the executive director of the Colorado Business Group on Health. “We’ve made very little progress with health systems,” he said.

Many employers, including some represented by the U.S. Chamber of Commerce, oppose government action, but others are growing more open to the idea of some sort of government intervention, ranging from rate regulation to a public option. “They are increasingly seeing in some cases the need for regulatory intervention because the market is broken,” Ms. Mitchell said.

But the pandemic and the potential threat it poses for many hospitals could put off any discussion, even if the Democrats were to win the White House and the Senate. “The hospitals are the most effective, most sympathetic lobby there is,” said Dr. Robert Berenson, a policy analyst at the Urban Institute.

Democrats will also have to figure out how to design a plan that people find both affordable and comprehensive, in contrast to some of the mid-tier plans sold under the Affordable Care Act, said Rodney Whitlock, a former Republican Senate staffer who now works for McDermott+Consulting. “How can the Democrats create a public option that is not clearly better than private insurance?” he asked. “If they don’t, they will be tagged as failing.”

Link to the original article. 

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Predatory Medical Billing In Texas https://www.americanpatient.org/predatory-medical-billing-in-texas/?utm_source=rss&utm_medium=rss&utm_campaign=predatory-medical-billing-in-texas Tue, 02 Jun 2020 13:51:19 +0000 https://www.americanpatient.org/?p=10860 Read More]]> Report on Predatory Medical Billing In Texas Names 28 Hospitals And A Dallas Law Firm

By SAM BAKER, KERA News, JUN 1, 2020.

The May 27 report from a healthcare research and policy team at Johns Hopkins University found 28 hospitals (22 in the state) have sued patients in Texas for unpaid hospital bills since 2018. Some saw their personal accounts and property garnished. The Dallas-based DeLoney Law Group handled 83% of the suits.

The report studied 62 Texas counties between January 2018 and February 2020. Most hospitals in those areas did not sue patients to collect unpaid medical debt.

The hospitals that did sue (including Lake Granbury Medical Center and Medical City Weatherford, both in North Texas) recovered a combined total of nearly $18 million, but that was less than 1% (0.15% on average) of the hospitals’ total revenue.

“There’s not a lot of money in it,” said report co-author Dr. Marty Makary, a surgeon and a professor of health policy at the Johns Hopkins School of Public Health. He’s also the author of The Price We Pay: What Broke American Health Care — And How to Fix It.

What The Report Said About Texas Overall

The news by and large in Texas was good — 93% of Texas hospitals have never sued a single patient. So there are many role model hospitals in terms of going down a certain path to try to get collections, but not actually suing low income patients to try to put a lien on their home or garnish a bank account. Which is actually the extreme form of what we call predatory billing in medicine, and that occurred at about 7% of Texas hospitals.

The Hospitals That Chose To Sue

Sometimes it was a for-profit hospitals. Some are nonprofit, which pay no taxes on hundreds of millions of dollars in revenue because they have a criteria that they claim they have met with the IRS to be tax exempt because of community benefit. We’ve argued on the advocacy side of our work that you can’t have it both ways. You can’t choose not to pay taxes and then argue you have to shake poor people down in court to garnish paychecks or put liens on their homes. It’s one or the other.

Dallas-Based DeLoney Law Group That Handled The Suits

So they go to hospitals and say, ‘Hey, we’re gonna “help” collect your bad debt.’ Sounds like a good cause — but actually what they’re doing is terrorizing low income folks in court. The people are getting served papers at home, don’t understand these court documents that they get. Some of these folks are not savvy with the legal process. They don’t know their rights.

The DeLoney Law Group did not respond to KERA’s request for a comment. Chris DeLoney told the Texas Tribune: “We don’t comment on any matters that may relate to any of our clients.”

Hospital CEOs

I often call and tell them what our research discovered. Many of the CEOs and senior executives have no idea their own hospital is suing patients in court, using court orders to get routing numbers and account numbers from individual bank accounts of patients that can’t afford their bills, and to pull the money right out of their bank account or put liens on their car. So I think if we appeal to the best in people, we realized that we all went into healthcare to help people and this sort of represents the ultimate violation of the doctor-patient trust. Most hospitals have stopped when we brought this to their attention and we’re doing this nationwide and things are changing.

Don’t Hospitals Have The Right To Collect Unpaid Debt?

The issue is how far do you go? Number one, if you are a nonprofit institution that claims community benefit as a way to avoid millions of dollars in taxes, that’s point number one. Point number two, the patients are begging for a price. Sometimes they get the bill and they’re just begging for help to figure out if they have to pay or if this is supposed to go to insurance. People are lost in this blame game between collections and the law firm, the insurance company and the hospital billing department, and people are frustrated.

The interview was edited for clarity.

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Who are responsible for outrageous medical bills? Hint: It’s not doctors.

Over the last few years, there has been a slew of articles about patients receiving surprise bills after ER visits. One woman was charged $5,751 for an ice pack and a bandage. An infant was charged $937 for an antibiotic ointment. Who sends bills like that? Is it the ER doctors? No. It’s large corporations.

ER docs want to help you regardless of your insurance.

In fact, as an ER doc, I usually have no idea if my patients are even insured when they roll in. The Emergency Medical Treatment and Labor Act (EMTALA) is a federal law that requires us to treat everyone who walks in the door regardless of their ability to pay. We proudly consider ourselves the safety net of the community. The Department of Health and Human Services estimates that ER docs spend about 55 percent of their time providing uncompensated care. This is the most of any medical specialty. We take our physician oath seriously.

But many of us work for large corporations.

The majority of ER docs work for one of three types of employers: 1) small private physician groups; 2) hospital systems; or, 3) contract management groups or CMGs. CMGs are essentially hospital staffing companies that function as large corporations. They employ ER docs and put them to work in hospitals with which they hold staffing contracts. By promising to streamline administrative tasks (such as physician credentialing, insurance billing, and corporate taxes), CMGs have taken over many smaller physician groups and hospital systems. They now hold staffing contracts with hundreds of hospitals around the country.

And these corporations want to generate profits.

Some estimate that half of the nation’s emergency departments are currently staffed by CMGs. Their priority is not to provide quality patient care. It is to generate profit. Some CMGs were traded on the New York Stock Exchange. Others have private equity firms investing in them. One CMG even sues patients who cannot pay. A study done by economists at Yale delved further into how CMGs use their power to exploit patients for profit.

CMGs now staff half of the nation’s emergency departments. Their priority is not to provide quality patient care. It is to generate profit.
A CMG can refuse to participate in insurance networks, which work on behalf of patients to negotiate discounted rates for medical care. These are called in-network rates. It will instead charge patients exorbitant out-of-network rates. Compared to the prior physician group that staffed a hospital, it can raise charges by a whopping 96 percent. These predatory billing tactics are directly responsible for the exorbitant ER bills being sent to patients.

These corporations may also be illegal.

Believe it or not, it gets worse. These corporations are likely violating both federal laws that prohibit physician fee-splitting and state laws that prohibit the corporate practice of medicine. Unfortunately, there is no public agency in place to enforce these laws. There was a case in Texas where the court concluded that the existence of a CMG was in violation of the state’s Medical Practice Act, but that case is from over 30 years ago.

We are struggling to fight for our patients.

Physicians are distraught over this situation, but over 60 percent of us are afraid to speak up out of fear that we will be terminated without cause. Some of us want to help fix the billing process, but CMGs insist on engaging in “closed-book” billing. That means they will not allow physicians to review what a patient is being billed. Consequently, physicians are turning to advocacy organizations for help in this fight.

And the integrity of our advocacy organizations is questionable.

The president one such organization is also the vice president of one of the largest CMGs in the nation. It seems that corporate interests have infiltrated even our own advocacy organizations.

Congress is finally taking notice.

Given all of this, it is not surprising that CMGs have gained the attention of Congress. Recently, Congress announced it would look into their role in surprise billing. Shortly after this announcement, a CMG’s CEO resigned. Maybe there is hope after all.

Ashima Vohra is an emergency medicine resident.

> See the original article.

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Woman Sued by Alabama Hospital Over $31K Bill: ‘I wish you’d have let me die’ https://www.americanpatient.org/woman-sued-by-alabama-hospital-over-31k-bill-i-wish-youd-have-let-me-die/?utm_source=rss&utm_medium=rss&utm_campaign=woman-sued-by-alabama-hospital-over-31k-bill-i-wish-youd-have-let-me-die Tue, 25 Feb 2020 21:54:47 +0000 https://www.americanpatient.org/?p=9926 Read More]]> By Ayla Ellison, Beckers Hospital  Report, Feb. 25, 2020.

  An Alabama woman received an emergency appendectomy at Flowers Hospital in Dothan, Ala., in May 2016. Three years later, the hospital sued her for nearly $37,000, which included a $31,000 bill plus interest, according to CBS News.

KC Roberts didn’t have insurance at the time of the emergency surgery in 2016. She and her husband own a struggling T-shirt screen printing company and could no longer afford insurance in 2015. Ms. Roberts told CBS News she was shocked when she received a $52,000 bill from Flowers Hospital after her surgery. After applying a discount for uninsured patients, she owed about $31,000.

Ms. Roberts and her husband paid $25 per month toward the bill for three years. However, in September the hospital sued her for the full balance plus interest.

“I told my husband, ‘I wish you’d have let me die,'” Ms. Roberts told CBS News. “I’ve said, ‘Honey, I love you and I love my family, but if you had let me go, today you would not be going through this.'”

In a statement to CBS News, Flowers Hospital said it offers interest free payment plans and makes several attempts to contact patients before pursuing legal action.

“It is our strong preference to work directly with patients,” the hospital said, according to CBS News. “Unfortunately, some individuals refuse to engage with us to resolve their balances. Litigation is always a last resort and is only pursued after we determine the patient has the financial ability to make some level of payment based on employment status and credit record.”

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Highest-earning nonprofit hospitals give less charity care than lower-earning ones, study finds https://www.americanpatient.org/9900-2/?utm_source=rss&utm_medium=rss&utm_campaign=9900-2 Tue, 18 Feb 2020 17:36:36 +0000 https://www.americanpatient.org/?p=9900 Read More]]> By Alia Paavola, Beckers Hospital Review, Feb. 18, 2020.

Nonprofit hospitals that generated the highest net incomes provided less charity care to patients relative to their income than their lower-earning peers, according to a new study published in JAMA Internal Medicine.

The study, which analyzed data from 2,563 nonprofit short-term general hospitals, found that nonprofit hospitals collectively earned $47.9 billion in net income in 2017, and provided $14.2 billion in charity care in 2017.

The 640 hospitals in the top-earning quartile generated nearly $48 million in net income, or more than the total income generated by the 2,563 facilities. The hospitals in the three lower quartiles posted an aggregate negative net income.

The study found that for every $100 of their net income, the top-earning 25 percent of hospitals provided $11.50 in charity care for uninsured patients and $5.10 in charity care for the insured.

By contrast, the hospitals in the lower third quartile provided $72.3 in charity care for uninsured patients and $40.90 to the insured.

“Nonprofit hospitals with superior financial performance provided disproportionately low levels of charity care,” study authors said. “Nonprofit hospitals with substantial financial strength should consider more generous financial assistance eligibility criteria to reduce the financial risk exposure of disadvantaged uninsured and underinsured patients.”

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