Hospitals are making more money than ever, as evidenced by a recent study revealing the practice of marking up commonly used drugs 3 to 7 times above their average sales price. The hospital markups are causing a rise in insurance premiums, meaning a rise in healthcare costs for employees and employers. Medxoom’s price comparison technology allows patients to compare hospital prices and quality in their health plan’s network before going for procedures that include commonly used drugs.
“Hospital charges are not irrelevant. Publicly available data indicate hospitals make a lot of extra money from expensive drugs, and commercial insurers go along with it. ‘I don’t think hospitals are doing this as a way to break even,” Dusetzina said. “Like every other single entity in the system, they are trying to make money.’”