KFF March 22, 2024
Hospitals account for 30% of total health care spending—$1.4 trillion in 2022—with expenditures projected to rise rapidly through 2031, contributing to higher costs for families, employers, Medicare, Medicaid, and other public payers. As policymakers consider a variety of strategies to make health care more affordable, there is growing interest in understanding the factors that drive hospital and health system spending. Some policymakers at the federal and state level are pursuing strategies to reduce the burden of hospital costs, including efforts to establish site-neutral payments, limit the prices that hospitals may charge commercial insurers relative to Medicare rates, promote greater competition in hospital markets, and introduce standards for hospital debt collection practices and charity care programs.
This issue brief describes gaps...
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