Health Affairs September 25, 2023
Thomas Priselac’s article in Forefront today raises important concerns that low payment rates from Medicare and state Medicaid programs, together with the growing percentage of patients funded by these programs, will undermine the delivery system’s ability to “support policy goals regarding affordability, equity, quality, and a healthier population.” He believes that the presence of “the hospital cost shift” has so far enabled hospitals to avoid consequences of low rates by public payers by getting private insurers to pay higher rates. But he foresees threats to hospital financial viability arising from either further reduction in rates from public payers or from possible new regulatory constraints on what hospitals can charge private payers.
I believe Priselac overstates the magnitude of possible hospital...