THE PROBLEM WITH HOSPITALS
Health care has a stranglehold on the U.S. economy, dominating our annual national spending with unsustainable, out-of-control growth that far outpaces annual economic growth.

Of the $4.5 trillion Americans will spend on health care this year, hospitals will take by far the biggest share – nearly one of every three of those dollars.

That’s triple the amount Americans spend on prescription drugs. Yet hospitals have avoided the scrutiny of lawmakers and the media, while extracting massive amounts of revenue from their communities with little accountability regarding cost and expansion.

As journalist and New York Times best-selling author Elizabeth Rosenthal says in the movie, “Hospitals get off scot-free.”

American Hospitals uncovers the economic incentives of an industry that is charging outrageous fees while sitting on billions of dollars in accumulated cash – while 100 million hard-working Americans suffer from medical debt. Hospitals are the driving force that makes the average cost of a family health insurance policy exceed $22,000, plus an additional deductible cost of up to $17,500. Employers and workers alike can’t keep up with these runaway costs.

Large hospital systems serving patients with employer-based insurance typically charge 2-4x more for procedures than Medicare with little transparency or relation to the quality of care. Big hospitals have attained monopoly power in almost all American cities.

But there are solutions that can succeed in holding hospitals accountable while reducing cost and improving quality. Countries around the world pay half the amount for health care and have better outcomes. Policy changes can bring more equitable payment for health care, relieving businesses of unfair pricing. American Hospitals shows a path forward.