Tuesday, Congressman Rudy Yakym (IN-02) questioned hospital executives during a House Ways and Means Committee hearing on hospital pricing, administrative costs, and access to care.
"Healthcare costs are constantly top of mind for Hoosiers, and my district feels it – provider shortages, reduced services, and rising costs year after year,” Rep. Yakym said. “It is absurd for a hospital system in New York City to be classified as rural. You are taking resources that are a lifeline for our rural providers. The Hoosiers I serve are literally paying the price, and hospitals need to do their part to fix it."
At the hearing, Congressman Yakym pressed New York-Presbyterian President and CEO Dr. Brian Donley on rural reclassification, a loophole that allows urban hospital systems to access federal programs designed to support vulnerable rural providers. New York-Presbyterian operates 11 hospitals across Manhattan, Brooklyn, and Westchester, yet has reclassified under this designation.
He also questioned HCA Healthcare CEO Sam Hazen on what is driving administrative costs, which estimates suggest account for between 15 and 25 percent of all healthcare spending nationally.
Background:
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Hospitals account for roughly a third of total U.S. healthcare spending, and hospital prices have risen faster than any other sector of the economy over the past two decades.
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Higher hospital prices drive up insurance premiums, placing financial strain on patients and the employers who provide their coverage.
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Rural reclassification allows hospital systems operating in urban areas to access federal programs intended to support vulnerable rural providers.
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Administrative costs are estimated to account for between 15 and 25 percent of total healthcare spending nationally.
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Indiana's Second Congressional District includes large rural areas where providers face ongoing challenges in maintaining services and access to care.
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