New York State Hospital Data Exposes Big Markups, and Odd Bargains

NEW YORK TIMES: … As part of an effort to make health care pricing more transparent, the state is naming hospitals and listing their median charges and costs for 1,400 conditions and procedures from 2009 to 2011. In 2011, prices ranged from the $8 bill at Benedictine Hospital in Kingston, N.Y., for treating a case of gastritis (cost: $2), to a $2.8 million charge for a blood disorder case at University Hospital of Brooklyn that cost it $918,462.

Hospital trade groups, who opposed the release of the database, say the figures will only confuse consumers, who rarely pay the sticker price for hospital care, especially if they have insurance. The hospitals also argue that cost figures, though based on reports to the government by the hospitals themselves, cannot be reliably compared because the state did not edit them for deaths, transfers and aberrations…

While insurance companies negotiate fees with hospitals that are lower than the billed charges, uninsured patients are often stuck with the full price and can be pursued by bill collectors… (more)

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