k-12 tax & $pending climate: How Government Policies Drive Consolidation, Undermine Competition, and Fuel Soaring Prices

Paragon Health Institute:

This paper argues that U.S. hospitals, which account for roughly one-third of health spending, operate in a government-shaped system that rewards consolidation, opacity, and inefficiency rather than competition, value, and accountability. It contends that policies such as certificate-of-need laws, payment differentials between care settings, restrictions on physician-owned hospitals, Medicaid financing gimmicks, and broad subsidies have driven hospital prices far above inflation, encouraged hospitals to acquire physician practices and merge into large health systems, and weakened consumer pressure on costs. Despite claims of financial strain, the paper says many hospitals maintain solid margins, investment income, and reserves while spending heavily on administration and other non-patient-care costs. The result is a costly, distorted market that burdens patients, employers, and taxpayers with high and unpredictable prices. To restore competition and improve efficiency, the paper recommends reforms such as site-neutral payment, stronger price transparency and subsidy oversight, repeal of anticompetitive rules, targeted charity-care standards, and restructuring hospital support programs to reward quality, efficiency, and genuine need

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K-12 Tax, $pending, governance and election climate: Kelda Roys, WEAC and Healthcare Cost Disease


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