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Friday, Oct 21 2016

Full Issue

Naming And Shaming Fails To Curb Hospitals' Practice Of Overcharging Patients

“There’s nothing stopping them,” says Karoline Mortensen, one of the authors of a study that looked at charges before and after hospitals received negative publicity about the high costs. If anything, they got more expensive after being shamed publicly.

A year ago, a study about U.S. hospitals marking up prices by 1,000 percent generated headlines and outrage around the country. Twenty of those priciest hospitals are in Florida, and researchers at the University of Miami wanted to find out whether the negative publicity put pressure on the community hospitals to lower their charges. Hospitals are allowed to change their prices at any time, but many are growing more sensitive about their reputations. What the researchers found, however, was that naming and shaming did not work. (Sun, 10/20)

Meanwhile, media outlets report on hospital news out of North Carolina, Maryland and Massachusetts —

Quorum Health, the embattled hospital spinoff of Community Health Systems, has agreed to sell two of at least eight rural hospitals it has for sale to reduce debt and refine its portfolio. Quorum announced Thursday that it has a definitive agreement to sell its 64-bed Sandhills Regional Medical Center in Hamlet, N.C., to FirstHealth of the Carolinas. Terms were not disclosed. (Barkholz, 10/20)

A long regulatory road remains ahead as University of Maryland Upper Chesapeake Health seeks state approval to open a stand alone medical center at the Havre de Grace exit off of Interstate 95, close Harford Memorial Hospital and expand its Bel Air hospital, despite the approval earlier this year of state legislation designed to make the application process less cumbersome. Officials with the Harford County-based health system plan to file their applications for various approvals with the Maryland Health Care Commission during the first three months of 2017. The regulatory process is expected to take at least one year, Martha Mallonee, a spokesperson for Upper Chesapeake Health, said Wednesday. (Anderson, 10/20)

After years of negotiations and lobbying, state health officials voted Thursday to allow Dimensions Health Corp. to replace Prince George's Hospital Center with a new $543 million regional medical center in Largo that will be owned and operated by the University of Maryland Medical System. The New Prince George's Regional Medical Center will include 205 acute-inpatient beds and offer services available at the current hospital, including a 15-bed special pediatric unit at Mt. Washington Pediatric Hospital  which is part of the current hospital center complex. (McDaniels, 10/20)

Massachusetts health officials Thursday gave final approval to Boston Children’s Hospital for a $1 billion expansion, rejecting arguments by opponents that project would undercut the state’s efforts to contain medical spending. The 10-0 vote by the Massachusetts Public Health Council gives the hospital a green light but imposes conditions that would penalize Children’s if it fails to keep health cost increases within limits. The council’s decision followed the recommendation of the state Department of Health and support from Governor Charlie Baker. (Vaccaro, 10/20)

After a six-year planning process, Boston Children's Hospital has the green light to begin construction on a $1 billion clinical building. The hospital got the final go-ahead on Thursday from the Massachusetts Department of Public Health's Public Health Council. The project has been controversial because it will result in the demolition of a half-acre healing garden, which was bestowed to Children's Hospital 60 years ago, and because of concerns about how the expansion will affect health care costs. (Joliocoeur, 10/21)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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