Issues in American Healthcare
American healthcare faces significant challenges. Rising costs mean that Americans pay almost double what individuals in comparable countries do, yet they do not receive better care. Some argue that it’s a complicated situation, but research—like that from my organization on institutions such as the Cleveland Clinic—points to simpler explanations as well.
Hospital executives, despite their luxurious lifestyles, often claim their extravagant spending on television advertisements, real estate in Abu Dhabi, and contemporary art is simply about “healthcare.”
The Cleveland Clinic has long been viewed as a charitable organization dedicated to its patients. As a tax-exempt entity, its operations benefit from taxpayer support and various public health advantages. However, the hospital still compensates its executives with millions and owns significant properties abroad, along with an impressive art collection.
So why are healthcare expenses and insurance premiums increasing? Why is the government pouring more money into long-term care? One reason could be the skewed priorities of profit-driven “not-for-profit” hospitals like the Cleveland Clinic.
Recent reports have unveiled substantial waste and fraud against taxpayers in states like Minnesota, California, and Washington State. However, the issue runs deeper, highlighting a systemic problem. Although it’s crucial to eliminate outright theft, waste and abuse still persist, especially among large healthcare entities.
Last month, Save Our States initiated a campaign to expose a large hospital system managed by the University of Miami. As the transplant center faced challenges, the focus seemed to shift towards a lavish new lobby and expansions into Abu Dhabi.
Our recent investigation into the Cleveland Clinic uncovers similarly lavish spending habits. For instance, they operate an in-house museum featuring a “world-renowned collection” of around 7,000 items, including contemporary art. Like many hospitals, the Cleveland Clinic has not skimped on public relations efforts and advertising, even running a Super Bowl ad.
The expenditures for executives are staggering, with plans for a sports center in collaboration with the Cleveland Cavaliers, along with investments in spots like London, Toronto, and again, Abu Dhabi.
How does this spending ultimately benefit American patients, and why should taxpayers foot the bill?
Some healthcare providers do indeed pay taxes. Independent practitioners operate under the same tax structure as any business. But once a practice is sold to a tax-exempt hospital—regardless of their significant revenue—it becomes tax-free. Consequently, hospital-owned clinics often add “hospital facility fees” to patients’ bills.
This essentially means patients pay more for identical services while the hospitals pay less in taxes. It’s not surprising that large hospital systems acquire smaller clinics; these decisions stem from policy, not market pressures. The result? A healthcare landscape marked by lower quality, higher prices, and skewed priorities.
For a lot of Americans, these rising costs first hit insurance premiums, and then manifest as greater premiums and reduced take-home pay. Ultimately, every American feels the weight of increased costs, diminished access to care, or, in many cases, both.
All the while, hospital leaders assert that their extensive spending on commercials, foreign real estate, and art is an investment in “healthcare,” all while living lavish lives.
Notably, the Cleveland Clinic has faced allegations related to fraudulent claims, instances of overcharging patients, and issues stemming from underpaid nurses, as well as a troubling rise in medical debt lawsuits against its patients.
Our new resource, Cleveland Clinic BetrayedPatients.com, highlights the misalignment of priorities within this taxpayer-supported hospital system.
Considering that the Cleveland Clinic is based in Vice President J.D. Vance’s home state of Ohio, he feels a responsibility to focus on tackling healthcare fraud as part of President Trump’s new initiatives. Both the Vice President and Congressional leaders must examine the spending practices of all subsidized hospitals, particularly the largest ones.
The paramount question isn’t whether one program yields positives; having one beneficial initiative doesn’t excuse wastefulness elsewhere. Instead, it’s essential to ask whether taxpayer funds support waste, abuse, and unnecessary expenditures.
What Americans truly need is a healthcare system that prioritizes taxpayers and serves patients effectively. We must ensure there’s healthy competition that encourages accountability, demands transparency, promotes innovation, and ultimately leads to superior services at lower prices.
