Price variation exists at New York State hospitals of similar size, services and teaching designation, despite how sick the patient population is and the complexity of services provided, according to a New York State Health Foundation study.
For the study, researchers used exclusive, nonpublic data from health insurers and negotiated contracts with New York State hospitals.
They analyzed data for 107 hospitals and nine insurers over three regions of New York State: Downstate, Buffalo and Albany.
Researchers further defined the Downstate region into seven subregions, a mixture of the following boroughs and counties: Bronx, Brooklyn, Manhattan, Nassau, Queens, Suffolk and Westchester.
Here are five study findings.
1. The study found some New York State hospitals are up to 2.7 times more expensive than the lowest-priced hospitals in the same region.
2. Hospitals in the Downstate region that serve more Medicare and Medicaid patients amass lower prices in the private commercial market, according to the study.
3. Contract provisions between hospitals and insurers can hinder competition, product innovation, transparency and cost containment strategies, the study found.
4. Hospitals with higher prices do not necessarily have higher quality and vice versa.
5. A hospital's market leverage, or its bargaining power when negotiating with insurers, is a key factor in the prices a hospital can command. Hospitals that are part of a health system with a large market share are generally higher-priced since health system's hold more leverage in contract negotiations.
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