According to this research paper, hospitals charge 6x price markups for drugs as compared with independent physician practices. This results in higher costs across-the-board for patients, increasing the overall cost of healthcare.
Since hospitals are de facto monopolies when a patient is receiving treatment, ensure that hospitals don’t charge monopolistic pricing. Require hospitals to charge market-rates for drugs.
Large hospital systems also are paid much more in reimbursements for the same services as a small private practice across the street. It’s messed up and promotes monopolies. “Non profits” my butt
As long as there are local private companies selling drugs that are in competition with hospital prices, there is no evident monopoly.
The problem is that if you are immobile on a hospital bed, you’re not in a position to request a drug from a “local private company”.
In this instance, hospitals are taking advantage of people who have no other recourse.
This isn’t demanding a company charge less for its products. The hospitals don’t produce these drugs - they are charging them at rates that are multiples higher than what they receive them for.
Since you can only be in one hospital at a time (and you usually don’t have a choice in the hospital during an emergency), the hospital is operating as a monopoly.
In the case you mentioned, you absolutely have a point, since these hospitals are actually presenting themselves as the sole provider of a particular product within a particular environment (their hospital). I also agree with you that there is a massive markup in the drug, and both the hospital and the drug company selected are making outsized market-abnormal profits. Your policy proposal is very good. Hospitals can make profits without price-fixing and price-gouging their patients.