Bay State to Successful Hospitals: Pay Up

[Geee]

Reason Magazine:

Bay State Senate to Successful Hospitals: Pay Up!
Peter Suderman | May 18, 2010

In hopes of bringing down the state's skyrocketing health care costs—which are currently growing about 8 percent faster than the state's GDP—the Massachusetts Senate is reportedly considering a bill that, among other things, would "require hospitals in better financial shape to put money back into the health care system to lower premiums." At first glance, this might sound like an easy way to bring down prices: Cut into provider profits to bring down insurance premiums. And the AP article doesn't provide much in the way of detail about how the provision would work, so it could be basically harmless. But it looks to me like the Senate is pushing for a system in which hospitals that set prices and contain costs successfully enough to find solid financial footing subsidize those that don't. Does this strike anyone else as an odd way to attempt to curb costs?

[Argyle58]

But it looks to me like the Senate is pushing for a system in which hospitals that set prices and contain costs successfully enough to find solid financial footing subsidize those that don't.

 

Suderman is shocked by this.......all it means is that the "share the wealth" mentality is extended to the hospitals, just like the rest of us who work and live on a budget. No shock here, just more disgust.