ALEXANDRIA, Va. /PRNewswire/ — As the Senate Finance Committee prepares for its November 19 hearing, “The Rising Cost of Health Care: Considering Meaningful Solutions for All Americans,” Consumer Action for a Strong Economy (CASE) is calling on lawmakers to confront the sector most responsible for America’s skyrocketing health care costs: hospitals.
While much of the public debate focuses on insurance companies, drug prices, and federal subsidies, CASE is demanding greater attention be put on the primary source of inflation in health care – hospital pricing power.
Hospitals have become the de facto price-setters in American health care. Through consolidation, aggressive acquisitions, and opaque billing practices, large hospital systems control what insurers, employers, patients, and taxpayers pay.
Health care prices in many regions are rising far faster than economic growth or medical necessity, yet there is little examination of the institutions that set these rates.
The consequences for patients and taxpayers are severe. The amount that patients spend on hospital care now represents the largest share of national health care expenditures.
Federal programs such as Medicare and Medicaid are forced to absorb higher costs, while rising premiums increase taxpayer burdens. Families are left to choose between financial stability and essential medical care as hospital-driven inflation continues to climb.
Patients also face fewer choices as large hospital systems consolidate. Facility fees, surprise billing, and complex charges leave families vulnerable to debt and financial distress. Many Americans delay or avoid care entirely because hospital costs have become unpredictable and unaffordable.
The power of hospitals makes the broader economy suffer as well. Rising hospital prices act as a hidden tax that limits wage growth, suppresses hiring, and reduces business investment. Employers consistently cite health care costs as a top barrier to economic growth, and the dominance of hospital systems threatens both competitiveness and productivity.
Meaningful solutions must directly address the hospital industry. There should be greater scrutiny of hospitals’ non-profit status, particularly when many operate like commercial enterprises while providing minimal charity care or community benefits.
Price transparency must be strengthened to ensure patients understand what they will pay. Community benefit requirements for non-profit hospitals must be enforced so that tax advantages align with actual public benefit.
Finally, lawmakers must confront the reality of skyrocketing hospital prices, especially in markets with little competition, to restore fairness and accountability.
Matt Kandrach, President of CASE, said, “If this hearing ignores the hospital industry’s power to set prices, it will be another missed opportunity for millions of Americans who desperately need relief. Hospitals are driving this crisis and Congress must stop pretending otherwise.”
Former FDA Associate Commissioner Peter Pitts, in a written comment to the docket, stated, “Healthcare in the United States is in a crisis of affordability and accountability. In 2023, Americans spent more than $1.5 trillion at hospitals, accounting for nearly one-third of the nation’s total healthcare expenditures.”
Pitts continued, “While attention is often placed on pharmaceutical companies and insurance providers, hospital systems, especially nonprofit institutions, are the primary driver of healthcare cost inflation and systemic inefficiency.”
As Wednesday’s hearing approaches, CASE urges Congress to put hospitals, their pricing practices, their tax privileges, and their obligations at the center of the debate. Without addressing these issues, meaningful health care cost reform will remain out of reach.
To learn more visit HospitalsSetThePrices.com
