why do hospitals charge so much?

Like any other service, hospitals and providers often use demand for their services to dictate prices. South Carolina, where health systems are more established, ranks second in the country in terms of what its hospitals charge people with private insurance. To do this, each hospital needs a large staff of billers, who spend thousands of hours a year chasing the money they are owed. But what happens when you have to play the game with the hospital alone (if you don't have insurance, or if your insurance doesn't cover that stay for some reason).

In an effort to cut costs (and make more money), hospitals are outsourcing some of their services (such as emergency rooms or lab tests) to third parties, many of whom are considered out-of-network by your insurance company. Because Medicare does not pay these ridiculous fees, nor do they pay the bogus "discounts" offered to private insurance companies based on rate card charges. If you still believe the treatment was in error, contact your hospital's billing department and point out the discrepancy. In a statement sent to Healthcare Dive, America's Health Insurance Plans pointed to rising hospital prices, spurred in part by provider consolidation.

In addition, hospitals have a federal legal responsibility to stabilise any patient regardless of their ability to pay and have other philanthropic investments. Finally, the public can now review the data to learn what these incredibly bizarre and opaque hospital billing procedures look like and how these inexplicable price variations are hitting all insured and uninsured directly and painfully in the pocketbook. Duke University law professor Barak Richman said that large hospitals can use their market dominance to become even more dominant. Hospitals across the country have been known for years to apply very peculiar pricing mechanisms.

The hospital can turn away all patients with that insurance, of course, but, for every insurance company, that would mean turning away a lot of patients insurance companies are now very large.

Summer Mason
Summer Mason

Infuriatingly humble twitter fanatic. Professional pop culture lover. Professional twitteraholic. Infuriatingly humble bacon scholar. Typical tvaholic.

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