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December 19, 2016

Statement by Bea Grause, President of HANYS, Regarding the Gorman Report on Hospital Pricing

The Gorman Report once again points out the complexity inherent in hospital pricing. The report describes some of the variables involved –– costs, allowances, contracts, location, market share and payer mix. However, this report does not provide adequate context for this information.  Nor does it acknowledge very real funding threats to Medicaid and Medicare.

New York hospitals are all non-profit entities. They range from small rural facilities to large urban academic medical centers. All of these facilities face increasingly daunting challenges in ensuring that payments for services cover actual costs. As a result, price variation is unavoidable. 

That said, HANYS and its members believe that consumers should be given meaningful information on which to base their healthcare decisions. Toward this end, HANYS and the Healthcare Financial Management Association have published a report - Understanding Healthcare Prices: A New York State Consumer Guide - which shows consumers how to compare prices, and how to better manage healthcare costs.

Through this report and other efforts, HANYS and healthcare providers are trying to provide consumers with meaningful assistance, while also trying to advance the process of health policy transformation.