Something happened last week. A not-so-subtle shift seemed to occur before our eyes, with the issue of outrageous hospital prices moving from a secondary to main stream issue for many Americans. What are the driving forces behind this tectonic shift? There are many, but on display last week was the voice of the people as represented by labor organizations in some of the most notable (or notorious) markets in the country for egregious healthcare pricing.
The Coalition for Affordable Hospitals is a growing coalition of labor unions, healthcare advocates, faith-based organizations, community- based groups, and social justice organizations fighting to rein in out-of-control hospital prices and anti-competitive behavior that hurts hard-working New Yorkers in every corner of the state and throughout our country. Hospitals are the driving force behind escalating health care costs, which prevent individuals from accessing affordable, high-quality care, leads to stagnating wages, and diverts taxpayer funds from much-needed public services. And the Coalition is growing – quickly.
On Wednesday, November 16th, a some of New Jersey’s most prominent labor unions, community organizations, healthcare advocates and social justice groups joined together to announce the formation of the New Jersey Coalition for Affordable Hospitals to fight for fair hospital pricing. The coalition launch came on the same day as the release of a bombshell new report by the New Jersey Policy Perspective (NJPP), revealing New Jersey may be overpaying $1.26 billion dollars because of inflated hospital prices.
On November 17th, the Coalition for Affordable Hospitals held a rally in front of New York Presbyterian and were joined by the New York State Nurses Association, United Food and Commercial Workers, NYC District Council of Carpenters, Actors Equity Association, among others, calling attention to high hospital prices and the damage it is inflicting on working people in the city! This rally was held the same day as a bombshell report was issued by the Lown Institute, a healthcare think tank, concluded that NYP received $359 million more in tax breaks than it delivered in non-profit “community benefit.”
The NYC Lown Report , which was picked up by local and national media outlets, examined the finances of nonprofit hospitals in New York City found that of the 21 hospitals reviewed, nine have significant Fair Share deficits—meaning that the value of their community investments fails to equal the value of their federal, state, and local tax breaks. In total, the nine hospitals are $727 million short of equaling the $1.2 billion in tax breaks they received in 2019. The Lown Institute Hospital Index , which looks at non-profit systems nationwide, showed that 227 of the 275 systems studied had fair share deficits.. In total, the fair share deficits of all non-profit hospital systems together revealed $18.4 billion in stranded dollars that could have been used to advance health equity, housing, food insecurity, and other local needs.
Not surprisingly, but certainly disappointing for employers, employees, and hard-working families struggling to put a Thanksgiving meal on the table this year, the cost of healthcare continues unchecked with annual family premiums for employer coverage hitting an average of $22,463 this year according to KFF. Every year we express collective disappointment hearing these growing figures, and every year we talk about the lack of sustainability of these costs to the American people driven by the prices of American hospitals.
But this week was different. This week I saw collective action from disparate groups. I witnessed collective outrage by working people. I observed individuals having “aha” moments -realizing that food-insecurity is a social ill being driven by many hospitals, not solved by them through “community benefit.”
Today I am grateful to all those who are or seek to be a part of this moment. “Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it’s the only thing that ever has.” – Margaret Mead.
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