Big Systems, Bigger Profits: Consumers Are Paying the Price of Corporate Hospital Power

The analysis found every state dominated by a handful of system-owned hospitals, which not only charged higher rates on average but also brought in nearly $28 million every year in profits per hospital, nearly ten times more than independent, unaffiliated hospitals that averaged roughly $3 million per year in net income.

By Sophia Tripoli, Alicia Camaliche, Aaron Plotke, Nicholas Chang, Families USA

Today Families USA published a new data analysis, “Big Systems, Bigger Profits: Consumers are Paying the Price of Corporate Hospital Power,” that found that just a small number of large corporate health systems dominate the majority of the hospital market. The biggest systems in the country then use that monopolized power to overcharge consumers, sometimes as much as three or four times the Medicare rate, and rake in tens of millions in annual profit.

This report adds to decades of evidence showing a clear and disturbing trend: the more hospital chains consolidate, the higher prices Americans pay, in their premiums and their out-of-pocket costs.

The analysis found every state dominated by a handful of system-owned hospitals, which not only charged higher rates on average but also brought in nearly $28 million every year in profits per hospital, nearly ten times more than independent, unaffiliated hospitals that averaged roughly $3 million per year in net income. The analysis found:

The Biggest Systems, in Highly Consolidated Markets, Charge the Most:

• HCA Healthcare (158 hospitals, 20 states): charged 339% of Medicare; $70.3 million in net income per hospital, per year
• Tenet Healthcare (70 hospitals, 10 states): charged 312% of Medicare; $24.2 million in net income per hospital, per year
• CommonSpirit Health, a non-profit (140 hospitals, 17 states): charged 306% of Medicare; $17.4 million in net income per hospital, per year
• AdventHealth, a non-profit (38 hospitals, 8 states): charged 410% of Medicare; $38.4 million in net income per hospital, per year

At a time when more than 90% of American voters want Congress to act to lower their health care costs, the unchecked corporate consolidation that is driving our health care affordability crisis can no longer be ignored.

Read the full report by clicking the button below. You can access the press release and explainer video.