This is what you call hubris. Healthcare Dive reports that the American Hospital Association is complaining to the White House that nurses are demanding higher wages. And, because there’s a nursing shortage, the hospitals are forced to pay their nurses more.
If you’ve been reading Just Care, you know that hospitals largely have monopoly power to set exorbitant rates for their services, driving up our health insurance premiums considerably. But, hospital staff largely have not benefited from those higher rates. Hospitals spend the money on executive pay and other line items. For-profit hospitals can generate big profits for shareholders.
The hospitals have no problem requiring patients to pay exorbitant prices for their care, but they do not like the fact that they now must pay their nurses more for their services. For those readers who are fortunate enough not to have been hospitalized in the last few years, get this: New York University hospital recently charged $400,000 to reset two broken bones in a young person’s leg. Max was in the hospital for all of two days. His insurer bargained the charges down to $200,000. $200 000 to reset a broken bone and spend two days in hospital!!!! Insanity.
Still, the American Hospital Association claims that the nurses’ advocates are “exploiting” the staffing shortages. Really? It’s the pot calling the kettle black. Members Congress should be standing with their constituents to regulate health care prices.
Rather, some in Congress appear to be standing with the hospitals, claiming the nurses’ pay is inflated. The feeling is that the hospitals are already under too much pressure because of the novel coronavirus pandemic. Of course, this is a setup for the hospitals to demand even higher rates from insurers. Since health insurers profit more the more they pay hospitals, it’s not unlikely that the hospitals will get the higher rates they demand.
The nursing shortage is affecting nursing homes and long-term care facilities as well.
The only solution is for Congress to regulate hospital and doctor rates for everyone, as well as the price of prescription drugs. But, that does not seem to be happening any time in the foreseeable future.
Here’s more from Just Care:
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