Category: Hospitals
Trump is keeping his word on health care costs
For years, Washington insiders from both parties talked a big game about lowering health care costs. Yet somehow, the bills kept rising, families kept struggling, and the real power players in the system kept getting a free pass. Not anymore.
The Trump administration’s Department of Justice is finally taking aim at one of the biggest and most overlooked drivers of high health care costs: anticompetitive contracting by dominant hospital systems.
Hospitals are businesses first and foremost — and like any business, they’re out to maximize profits.
The recent lawsuits against giants like New York Presbyterian and Ohio Health are a clear signal that the era of unchecked hospital power is coming to an end.
Let’s be honest about what’s been happening. In city after city, hospital markets have quietly consolidated until competition barely exists. When nearly all metro areas have highly concentrated hospital systems, those systems use their leverage to lock in contracts that guarantee them top-tier placement in insurance networks while blocking efforts to guide patients toward more affordable care.
These so-called “anti-steering” provisions might sound technical, but their impact is simple: higher prices and fewer choices for American families.
When insurers and employers cannot design plans that reward lower-cost, high-quality providers, patients are forced into more expensive options whether they realize it or not. Workers pay more in premiums. Businesses face higher costs. Taxpayers pick up the tab through government programs.
What makes the Trump DOJ’s actions so important is that they are willing to challenge institutions that have long been treated as untouchable. Hospitals often enjoy a halo effect in their communities, and many do lifesaving work. But that does not give them the right to use their market dominance to shut out competition and inflate prices.
Hospitals are businesses first and foremost — and like any business, they’re out to maximize profits.
By going after these restrictive contracts, the administration is restoring something that has been missing from health care for far too long: real competition. When plans have the flexibility to exclude overpriced systems or steer patients toward better-value options, the entire market starts to work the way it is supposed to.
We already have evidence this works. Plans that avoid the most expensive hospital systems can significantly reduce costs — without negatively impacting the quality of the care being delivered — and even modest steering can deliver meaningful savings. In a system as large as American health care, those savings translate into billions of dollars and real relief for families.
Predictably, the corporate hospital industry is pushing back, claiming these lawsuits are misguided. But that is what you hear whenever someone finally challenges entrenched interests. The same voices that benefited from the status quo are now being asked to compete on a level playing field, and they do not like it.
RELATED: Tax-exempt hospitals are not putting their patients first
David M. Levitt/Bloomberg/Getty Images
Instead of protecting powerful institutions, the Trump administration is standing up for patients, workers, and employers who have been footing the bill for far too long. It is a reminder that markets only work when competition is protected, and that means enforcing the rules when they are violated.
For decades, Americans have been told that health care costs are just too complicated to fix. But sometimes the problem is simpler than the experts admit. When a few dominant players can write the rules, everyone else loses. President Trump and the Department of Justice are finally rewriting that script.
Draining the swamp is not just about Washington politics. It is about rooting out the hidden arrangements and insider advantages that drive up costs across our economy, including in health care.
By taking on anticompetitive hospital contracting, the Trump administration is proving that no industry is above scrutiny.
That is a win for competition, a win for affordability, and most importantly, a win for the American people.
