Prices charged by NYC area hospitals vary widely, new report says

In the New York City area, hospitals with the biggest market share tend to charge the highest prices, according to a new report from the New York State Health Foundation.

The report, prepared by Marlborough, Mass.-based Gorman Actuarial, studied pricing in three regions of the state. In downstate New York, the highest-priced facilities negotiated prices with insurers that were 2.2 to 2.7 times more than what the lowest-priced hospitals fetched.

Facilities that are part of New York-Presbyterian, Northwell Health and Montefiore Health System were consistently among the highest-priced facilities, while NYC Health + Hospitals’ facilities were all in the two lowest-priced tiers, according to the report.

The report also found that safety-net hospitals that rely mostly on Medicare and Medicaid for revenue tended to receive lower reimbursements from commercial insurers as compared with hospitals that treat few publicly insured patients.

The study’s authors received unprecedented access to contracts between hospitals and insurance companies, granted by the state Department of Financial Services, which regulates insurers. They described the hospital industry as one where higher prices don’t necessarily translate into higher-quality care, and complex contracts may hinder insurers’ ability to hold down health care spending.

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Jeffrey R. Ungvary President

Jeffrey R. Ungvary