New Study Faults Nonprofit Hospitals for Rising Health Care Costs

The Center for Medicine in the Public Interest (CMPI) recently took a deep dive into the nation’s skyrocketing health care costs and found hospitals – particularly nonprofit hospital systems – are a major contributing factor.

Researchers found higher costs connected to the fee-for-service model, which incentivizes hospitals to maximize billing procedures rather than focus on patient outcomes.

While nonprofit hospitals often benefit from public subsidies and tax-exempt status, researchers concluded that nonprofit hospital systems typically operate with little financial transparency, even as they accounted for more than $1.5 trillion in spending in 2023.

“From hospital mergers to executive and administrative pay to site-based fees, hospitals are increasing costs for Americans without oversight or accountability,” CMPI President Peter Pitts said in a news release. “Patients deserve to know what they are paying for and to pay based on the service, not the location of care.”

The report also highlighted “aggressive debt-collection practices” by nonprofit hospitals.

Have you or a loved one received treatment through a nonprofit hospital system? Were you surprised (not in a good way) when you got the bill? Share your story (and selfie) with Voices for Affordable Health.