Partners CEO: 'Healthcare is very affordable in Massachusetts'

Boston-based Partners HealthCare CEO David Torchiana, MD, said Thursday healthcare costs in Massachusetts are not exceptionally high given the income statistics for the commonwealth, according to The Boston Globe.

In remarks to the Greater Boston Chamber of Commerce, Dr. Torchiana said healthcare in Massachusetts is more costly because it is home to several large teaching hospitals, whose medical training and research programs make them expensive to operate. However, relative to the high incomes in the commonwealth, Dr. Torchiana said healthcare remains reasonably priced given the median household income, according to the report.

Citing data from The Commonwealth Fund, Dr. Torchiana said health insurance premiums represent 18 percent of median household incomes in Massachusetts, compared with the national median of 21 percent of income per household. According to the U.S. Census Bureau, the median household income in Massachusetts is $68,000, roughly 30 percent higher than the national median of $53,000, the Globe reported.

However, healthcare spending in the state is accelerating. Between 2013 and 2014, Massachusetts increased healthcare spending by 4.8 percent, exceeding a commonwealth target of keeping health spending increases below 3.6 percent each year. The increase was also markedly higher than the local rate of inflation, 1.6 percent, according to the report.

Some employers, consumer advocates and medical providers disagree with Dr. Torchiana.

"Healthcare remains one of the top concerns among Massachusetts employers," said Christopher P. Geehern, spokesman for Associated Industries of Massachusetts, according to the report. "Every healthcare institution has to look at: Are you bringing the average up, or are you bringing the average down? It's no secret that Partners is on the higher end of that average."

Reports from The Boston Globe show Partners charges higher prices than its competitors for similar care. Attorney General Maura Healey has remarked this market "dysfunction" is driving healthcare price hikes across Massachusetts. The Service Employees International Union is targeting these price gaps in its campaign to regulate hospital payments so Partners collects less money and its smaller competitors collect more.

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