A pack of for-profit hospitals are taking too many liberties with their for-profit names. A new study by Health Affairs found 50 hospitals in the U.S. have markups over 10 times the actual cost of care. The data was found using 2012 Medicare cost reports.
At the top of the list is North Okaloosa Medical Center, located about an hour outside of Pensacola, Fla. The hospital was found to charge uninsured patients 12.6 times the actual cost of patient care. A typical hospital charges 3.4 times the cost of patient care.
The largest numbers of the hospitals on the list – 20 – are in Florida. Of the 50, 49 are for-profit and 46 are owned by for-profit hospital systems. One for-profit hospital system, Community Health Systems, owns and operates 25 of the hospitals on the list. Hospital Corporation of America operates 14 others.
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Uninsured individuals are commonly asked to pay the full amount, unaware they are being scammed. The markups can lead to personal bankruptcy or the avoidance of necessary medical attention.
"The main causes of these extremely high markups are a lack of price transparency and negotiating power by uninsured patients, out-of network patients, casualty and workers' compensation insurers and even in-network insurers," the study reads. "Federal and state policymakers need to recognize the extent of hospital markups and consider policy solutions to contain them."
Most astounding of all, these markups are not illegal. Maryland and West Virginia are the only states with laws limiting hospital fees.
Researchers offered solutions in the study, including limitations on the charge-to-cost ratio, mandated price disclosure to regulate the markups or some form of all-payer rate setting.