A broad coalition in New York is backing a state law that would impose the nation's first cap on health care costs for hospitals that own or house outpatient clinics and charge higher rates than private practices.
Under the Fair Price Act, patient billing costs are capped at 150% of the fees set by the federal Medicare program for procedures for seniors.
A joint committee made up of the powerful building trades union Local 32BJ and a division of the New York Real Estate Board is funding a seven-figure media campaign to drum up support for the bill.
“Two patients visit a local clinic for the same procedure, but pay vastly different prices, as large hospitals take over independent clinics and drive up the cost of routine procedures. , things like this are happening all over New York,” the 30-second TV ad says.
“Medical care should not be more expensive just because a hospital owns a building. The same procedure should cost the same fair price.”
This ad, paid for by the 32BJ Labor and Industrial Co-operation Trust Fund, provides an example of the clear disparity.
Currently, it costs $23 to get a child's flu shot at a doctor's office, compared to $183 at a hospital outpatient clinic, advocates say.
The cost of administering an IV to an elderly patient in a doctor's office is $566, less than half the $1,719 charged at a hospital-run outpatient clinic.
An MRI scan to test for abdominal pain costs $1,308 in a hospital clinic, more than double the $659 cost in a doctor's office.
Groups supporting the bill include the NAACP, the Hispanic Federation, the Asian American Federation, and the New York Immigration Coalition.
“Big hospitals treat everyday medical services like a game of monopoly, charging them more every time a patient lands in a building they own,” said Manny of the Service Employees International Union Local 32BJ. President Pastreich said.
“Our members expect to be able to go to their local clinic to take their child for a flu shot, get an MRI for a sore knee, or buy an IV bag for dehydration. You don't have to pay high prices just because you have an expensive disease.'' The hospital took over the facility. ”
State Sen. Liz Krueger (D-Manhattan), chair of the influential Finance Committee, just introduced the Fair Price Act.
“We cannot allow big hospitals to become the next Big Oil or Big Steel and have monopoly control over everything and make people pay more for the same basic procedures. No. Capping the cost of outpatient services through the Fair Price Act helps level the playing field and ensures that patients have access to the same fair prices for their health care needs wherever they go. ,” Krueger said.
Apart from the hard cap, this measure prohibits the addition of facility fees to regular outpatient services, thereby preventing hospitals from being overpaid for medical services.
State officials, including the state attorney general, would set caps and impose penalties for violations of the law or “deceptive practices.”
Supporters said it would make health care more affordable by lowering costs for patients, state and local governments, and insurance companies such as union health funds.
About 60% of physician practices are owned by hospitals or corporations, and nearly 80% of physicians are employees of hospitals or corporations, according to Local 32 BJ.
If passed, the bill would affect major hospital networks including NewYork-Presbyterian, Northwell Hospital, and NYU Langone Health.
Hospital lobby groups oppose “terrible bill”.
“Hospitals and clinics are not the same. Only hospitals provide care 24/7 and admit patients through their doors. Hospitals are also subject to myriad regulatory requirements that do not apply to clinics. ,” said Kenneth Laske, president of the Greater New York Hospital Association.
Laxey said the bill “ignores” the financial pressures facing hospitals.
“Does 32BJ have the magic wand to eliminate Medicaid's severe underpayments and the alarming number of late payments and denials by commercial insurers?” asked Raske.
“If the goal was to get New Yorkers to seek care in Philadelphia, this bill would be enough. Rather than promoting harmful public policies, supporters of this bill should join the hospital community and increase Medicaid payment rates. We must fight for higher rates and stop health insurance companies from cheating.”
