High-markup hospitals linked to worse patient outcomes, study finds.

High-markup hospitals charge up to 17x care costs, with worse patient outcomes.

Why it matters

  • High-markup hospitals (HMH) charge significantly more than other hospitals.
  • Patients at HMH face greater complications and readmission risks.
  • This raises concerns about healthcare fairness and transparency.

By the numbers

  • HMH charge up to 17x the cost of care, vs. 3x at other hospitals.
  • About 10% of hospitals are HMH.
  • Patients at HMH have 45% greater odds of complications and 33% higher readmission risk.

The big picture

  • Higher prices do not mean better care; in fact, outcomes are worse at HMH.
  • Most HMH are for-profit and located in large metropolitan areas.

What they're saying

  • Commenters suggest policy changes to regulate hospital pricing and address profiteering.
  • Some highlight the need for transparency in healthcare pricing.

Caveats

  • Study limitations include lack of comprehensive pricing data and geographic variation info.
  • More research is needed to understand why outcomes are worse at HMH.

What’s next

  • Policies for price transparency and regulation are needed.
  • Further research to understand the reasons behind worse outcomes at HMH.