Hospital too expensive? Another might be cheaper

Hospital charges for the same diagnosis could vary by two or three times in Oregon, and higher prices don't necessarily mean better quality, according to a report issued by a health care union Monday.

The report listed the top 10 most expensive and least expensive hospitals in Oregon and called for improved transparency in hospital costs.

The Senate health care committee on Wednesday will hear a package of bills aimed at improving hospital price transparency.

According to the report, which was based on inpatient discharge data from the Oregon Health Authority, a patient who receives an appendectomy and stays overnight in the hospital could be charged between $9,055 and $30,117, depending on the hospital.

Overall, Sky Lakes Medical Center in Klamath Falls was the most expensive hospital. Pioneer Memorial Hospital in Heppner was the least expensive, according to the report. Salem Hospital was 20th out of 59 on the list.

High-priced hospitals also performed worse in 30-day readmissions and post-surgical deaths outcome measures, according to the union.

SEIU Local 49, which issued the report, called for greater transparency and regulation of hospital prices.

"It's time for hospital charges to be tied to the actual costs of providing services," the report reads.

SEIU is pushing a bill that would create a hospital rate commission in the Oregon Health Authority. The commission would review charges billed by hospitals to determine whether they are reasonable.

Andy Van Pelt, executive vice president of the Oregon Association of Hospitals and Health Systems, said in a statement that SEIU's study is misleading.

"The SEIU report's use of internal hospital charges is intended to confuse the debate over hospital prices," Van Pelt's statement reads. "In every instance, those charges are reduced downward based on rates negotiated between hospitals and insurance providers. In most cases, payments are predetermined by Medicaid and Medicare, which are much lower than what it costs to provide the service. Finally, a majority of hospitals in Oregon provide free care to individuals with incomes up to 200 percent of the federal poverty level, or about $48,500 annually for a family of four, with additional discounts through sliding scales for higher income levels. So, what patients pay and what hospitals are reimbursed are both far less than their report alleges."

The health care committee Wednesday will also hear three other bills addressing hospital prices.

Among them is Senate Bill 900, which the hospital association is pushing. It would direct the Oregon Health Authority to post online median prices for common hospital inpatient and outpatient procedures. The website would allow consumers to compare prices across hospitals, but it would not be a precise estimate for a specific patient's medical procedure.

Senate Bill 891, sponsored by Sen. Elizabeth Steiner Hayward, D-Beaverton, and supported by the OSPIRG Foundation, would mandate that health care facilities post publicly, both online and onsite, prices for their top 100 inpatient and outpatient procedures, broken down by top insurers and public programs in Oregon.

The bill would also require health care facilities to provide price estimates upon request, including estimates of any additional fees, such as out-of-network fees or facility fees.

Senate Bill 330 would require nonprofit hospitals to adopt formula meeting specified criteria for executive compensation.

The hearings will start at 3 p.m. in Hearing Room A of the Oregon State Capitol.

syoo@StatesmanJournal.com, (503) 399-6673 or follow at Twitter.com/syoo.

Top 10 most-expensive hospitals in Oregon

1 - Sky Lakes Medical Center, Klamath Falls

2 - Asante Rogue Regional Medical Center, Medford

3 - Legacy Emanuel Hospital & Health Center, Portland

4 - McKenzie-Willamette Medical Center, Springfield

5 - Legacy Good Samaritan Medical Center, Portland

6 - Mercy Medical Center, Roseburg

7 - Providence Medford Medical Center, Medford

8 - Bay Area Hospital, Coos Bay

9 - St. Charles Medical Center, Bend

10 - Asante Three Rivers Medical Center, Grants Pass

— Report issued by SEIU Local 49