NYT Tries to Fathom Stunning Hospital Fees
The New York Times, specifically Elizabeth Rosenthal, tries to get behind the outrageous and invariably murky costs of inpatient and ER care. Hospitals claim that they’re compensating for indigent care and low reimbursements from government programs, namely Medicaid and Medicare. But economists find that hospitals charge what they charge primarily because they can, and that there are few or no constraints to control or moderate their astronomical and inexplicable fees. I personally believe that there’s no reason a hospital administrator should have an annual income that exceeds that of your average primary care doctor (and certainly no more than $1 million).