New Study Finds Florida has Most Expensive Hospitals in the Country
In a new study by National Nurses United, Florida was found to have the most expensive hospitals in the country. This outcome was determined by the hospitals’ charge-to-cost ratios, and 40 Florida hospitals came in amongst the top 100 most expensive – the highest number of hospitals in any state.
With COVID-19 cases surging in Florida, the cost of a hospital visit is an immediate concern. The high cost of hospital care could prevent many people from seeking treatment, and result in the continued spread of the coronavirus in a state that is already a hot spot. Some shocking findings from the National Nurses United study found that:
- US hospitals charge on average $417 for every $100 of their total costs
- US hospital profits, pushed upward by high charges, hit a record $88 billion in 2017, and fell slightly in 2018 to $83.5 billion. Since 2013, hospital profits have increased by 21 percent. Over the last 20 years, hospital profits have increased by 411 percent. In total, hospitals have received nearly a trillion dollars in net income.
- An insured patient in Kentucky, likely suffering from COVID-19, racked up $180,000 in hospital and emergency department charges. Though the insurance paid most of the bill, the patient still ended up paying $7,900 out-of-pocket for the treatment.
- A patient in Florida, who visited an emergency room believing he had COVID-19 and received a battery of tests, ended up being stuck with a bill for over $2,700.
With hospitals charging patients more than four times the cost of care, employers are turning to alternative insurance methods to contain costs. One of the popular methods is called Reference-Based Pricing (RBP). Employers moving to an RBP model have achieved up to 40% savings over typical PPO plans. RBP is unique in that it also eliminates the need for a provider network, giving members the freedom to seek care from the provider that they choose. One of the main reasons for the surge in RBP during the coronavirus pandemic has also been attributed to cost transparency. RBP includes line-by-line auditing of claims to avoid situations where employers could be vastly overcharged for certain health services or products, like being charged a $1,000 for a toothbrush.
If you are interested in learning more about Reference-Based Pricing and how it could help your organization save money, please Contact Us !