Regulating hospital rates by placing what private health options shell out would have the most impact as a coverage alternative for minimizing once-a-year hospital spending, in accordance to new exploration from RAND Company.
The analyze as opposed 3 coverage solutions – regulating hospital rates, increasing price transparency and expanding level of competition among hospitals – to find which action would have the most impact.
If the rates that industrial payers compensated to hospitals ended up established as significant as a hundred and fifty% and as minimal as one hundred% of what Medicare pays, hospital spending could be reduced yearly by $sixty one.9 billion to $236.six billion, respectively, in accordance to the report.
That adjust would make a one.seven% to six.five% reduction in national health spending, RAND stated in the analyze.
Improving health care price transparency could reduce U.S. spending by $8.seven billion to $26.six billion for each calendar year while