Hospital’s Prices

Part of the Solution or an Underlying Problem?

August 1, 2024

The Oregon Health Authority recently published a newly updated state online dashboard on the finances of Oregon hospitals. The dashboard has shown a wide variance in the price of procedures at hospitals throughout Oregon. Consumers and policy makers can utilize the database to view and track hospital finances. 

The role of hospital prices in achieving a universal, equitable, and affordable healthcare system is a complex issue. As the Universal Health Plan Governance Board begins to devise Oregon’s universal, equitable, and affordable healthcare system, understanding hospital prices is key to creating our new system.

The online resource published by the Oregon Health Authority is one of several dashboards posted online scrutinizing hospitals, part of the state’s efforts to track and curb the growth of healthcare  costs. The state will host an online webinar to talk about the updated dashboard on Aug. 8 between noon and 1 p.m.

Is universal health care the solution to create stability for hospitals and patients?

The high cost of healthcare impacts all of us-businesses, taxpayers and the state. Hospital costs currently account for 35% to our overall health care premium. In a universal, equitable and affordable health care system, we will need hospitals to continue to provide critical care and access to Oregonians. But, high hospital prices can be a significant barrier to access, preventing individuals from seeking necessary care. In addition, Exorbitant hospital costs can lead to substantial medical debt for patients, exacerbating financial insecurity and reducing overall societal well-being.

The World Health Organization recommends that when creating a universal health care system, a focus on prevention can help reduce the overall costs of healthcare and improve patient outcomes. Establishing transparent and fair pricing can encourage preventive care and early interventions, which are often more cost-effective than treating advanced illnesses in an acute care setting.

The dashboard confirms that there is a wide variation on prices for the same procedures.  Why does a procedure cost more in location A versus location B? 

Hospital prices can present significant challenges to achieving universal health care, they can also be part of the solution when managed with appropriate policies and incentives. The key lies in striking a balance that ensures affordability, equity, and high-quality care for all individuals.

The state of Oregon can play a crucial role in standardization of prices and align them with the goals of the Universal Health Plan Governance Board to help reduce costs and improve patient outcomes and set Oregon on the path to the affordable healthcare system we all need.