Third annual conference tackles the cost of hospital care

Returning for its third year, The Price of Power: Confronting the Hospital Affordability Crisis conference on Thursday gathered government officials and public health advocates to discuss the ongoing issue of inconsistent pricing for healthcare procedures. The event, presented by the 32BJ Labor Industry Cooperation Fund, 32BJ Health Fund and City & State and held at the Metropolitan Pavilion in Manhattan, explored “anticompetitive power dynamics” that have kept hospital prices high for all parties: employers, unions and individuals.

Manny Pastreich, President of SEIU 32BJ, gave opening remarks about the effect of increasing hospital costs on insurance coverage for the 175,000 service workers in the union, as a larger proportion of employees’ compensation goes to maintaining health programs. 

“Our union members' collective strength has lifted them out of poverty, but I have also come to learn that healthcare is what's going to force them to struggle every day to live in New York City,” Pastreich told attendees in opening remarks for the event. He noted that “high hospital prices represent a hidden tax on all New York City businesses,” but expressed hope at recently introduced “groundbreaking legislation that further addresses rising hospital prices in the state.” 

Pastreich passed the microphone to Ryan Danks, director of Civil Enforcement at the Department of Justice, who discussed the importance of market competition. 

“Almost half of all metro areas are dominated by a single health insurer, and far more are highly concentrated,” he said. “The markets for hospitals and physicians are similarly concentrated, if not worse. These market structures not only give single insurers or single hospitals too much control over patients and workers, but they also make it easier for the remaining firms to informally cooperate with their would-be competitors to raise prices, reduce wages, hamstring benefits, or limit innovation.” 

New York City Council Member Julie Menin pointed to the Healthcare Accountability & Consumer Protection Act as a solution to growing healthcare challenges. Enacted last year, this act established an Office of Healthcare Accountability that will “empower New Yorkers with the critical information that they need about hospital pricing to help all of us make more informed decisions,” said Menin. She reminded attendees that this legislation could save New York City $2 billion according to a 32BJ study. 

New York State Assembly Member Chantel Jackson took the stage to discuss the Fair Pricing Act, which will soon be introduced to tackle rising healthcare costs. As representative of the South Bronx, Jackson noted that her district's residents face a high risk of obesity, diabetes, heart disease, and asthma. She hopes the act will minimize barriers to doctor visits and medical support. 

Jackson introduced Liz Krueger, New York state Senator, who expressed frustration over the inaccessibility of doctors and healthcare providers due to hospital affiliations. 

“Now you have a profit motive built into access to healthcare that, in theory, is getting better and better. But if you talk to people, it isn't getting better and better, but it’s certainly costing a lot more.” 

The “Morning Panel: Reining in the Giants – Policies for Fair Prices and Better Markets” and “Afternoon Panel: The Labor and Employer Imperative for Affordable Healthcare” covered similar topics as panelists touched on hospitals shifting towards a profit maximizing business model. 

“Over the past two decades, health insurance for New York City's workforce and retirees has skyrocketed from $1.6 billion to a staggering $11 billion,” said New York City Council Member Lynn Schulman, chair of the Council Health Committee. What’s driving this are the exorbitant hospital prices charged by the five largest health systems in New York City.”