NEW YORK, June 23, 2025 /PRNewswire/ -- Today the Center for Medicine in the Public Interest (CMPI) released a new report "Unmasking the Real Cost Drivers in U.S. Healthcare: A Critical Examination of Hospital Pricing and Policy Reform," which examines the role of nonprofit hospitals in driving unsustainable healthcare costs in America.

The United States is facing a crisis of affordability and accountability in healthcare. This report illustrates how hospital systems across the country, often shielded by their nonprofit status, are the main drivers of the astronomical rise in medical costs. The report also highlights the urgent need for legislative reform and lays out policy recommendations.

The report builds on the national conversation around healthcare reform. Despite President Turmp's efforts to increase price transparency in healthcare, which started during his first administration with Executive Order 13877, almost 80 percent of hospitals were out of compliance with federal transparency requirements as of last year.

"From hospital mergers to executive and administrative pay to site-based fees, hospitals are increasing costs for Americans without oversight or accountability. The current momentum for increased accountability is promising, but there is a desperate need for long-term reform," said CMPI President Peter Pitts. "Patients deserve to know what they are paying for, and to pay based on the service, not the location of care."

"As the U.S. Senate works through the 'Big, Beautiful Bill' and looks at reining in waste, fraud, and abuse, hospitals must be central in that conversation," said report co-author Jerry Rogers. "As a country, we cannot afford to offer tax breaks to nonprofit hospitals just so they can pay their CEOs exorbitant sums of money, inflate their prices, and speculate on real estate. Taxpayers deserve better."

State and federal officials are taking notice. As one of the first acts in his second administration, President Trump signed another Executive Order to empower patients through "radical price transparency." In late May, Florida Attorney General James Uthmeier announced he issued subpoenas to Florida-based hospitals to ensure they comply with state transparency laws. Indiana Governor Mike Braun signed legislation targeting the high prices at nonprofit hospitals and increasing transparency or the institutions will face losing their nonprofit status. 

"Hospitals have remained in the shadows for too long, and the divergence between the mission of nonprofit hospitals and their operations can no longer be ignored. Profits cannot be placed over patient wellbeing and revenue must not be prioritized over responsibility," said Peter Pitts.

The full report can be found here.

To learn more, visit cmpi.org.

 

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SOURCE Center for Medicine in the Public Interest