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BUSINESSCanadian study compares price discrepancies at U.S. hospitalsCanada looks at the U.S. delivery system as it debates the role of private services as part of its own single-payer health system.By Katherine Vogt, AMNews staff. June 28, 2004. A new study has concluded that for-profit hospitals owned by investors result in higher payments for care than private nonprofit hospitals. Canadian researchers reviewed previous medical studies on the costs of health care at U.S. hospitals, and their report appeared June 8 in the Canadian Medical Assn. Journal. That was the same day the Supreme Court of Canada heard a case that could potentially shake up Canada's national health care system by undoing bans on the use of private medical services and insurance. P.J. Devereaux, MD, a cardiologist at McMaster University in Hamilton, Ontario, who led the study with colleagues, said there was a significant discrepancy between facilities, with payments for care at for-profit hospitals about 19% higher than those at private nonprofit hospitals. The report examined eight previous studies spanning from about 1980 to 1995, with data representing nearly 350,000 patients. Dr. Devereaux said public nonprofits were excluded because they have a different economic situation than other hospitals. He cited several possible reasons about what might be causing the difference in payments. For-profits, he said, have to pay taxes and must generate revenue to satisfy shareholders, while nonprofits don't have those responsibilities. Also, he said for-profits have higher executive salaries and bonuses compared with nonprofits, and they seem to be more top-heavy in administration. "That's a lot of extra money that the for-profits have to generate and that the nonprofits can put directly toward care," he said. "The reality is that the for-profits' economic challenges are just too overwhelming compared to the nonprofits." [...]Full text of AMNews content is available to AMA members and paid subscribers.
Copyright 2004 American Medical Association. All rights reserved.
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