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What Can Policymakers Do: Using NASHP’s Hospital Cost Tool 2.0

In April 2022, NASHP released the Hospital Cost Tool (HCT) – an online dashboard to provide state policymakers, health care payers, researchers, and others with analytical insights into how much hospitals spend on patient care services, and how such costs relate to hospital charges (list prices) and actual prices paid by health plans.

Since the release of HCT 1.0, state regulators, employer health care purchasers, and others have used these data to:

While states and their partners have made progress in developing policies that address hospital/ health system costs, they still face many obstacles. For example, some hospitals are not complying with the federal price transparency rules, as evidenced by monetary penalties and warning letters issued by the Centers for Medicare & Medicaid Services, and Colorado’s prohibition on medical debt collection by non-compliant hospitals. To better understand hospitals’/ health systems’ costs, more transparency is clearly needed.

To help policymakers overcome such obstacles to evidence-informed policy development, NASHP is excited to share an updated version of the tool: HCT 2.0. In addition to including more recent data than was previously available, HCT 2.0 offers new data such as hospital-level COVID-19 provider relief funding. Users can view the chart below for a quick understanding of how HCT 1.0 and HCT 2.0 differ.

 

HCT 1.0

(April 2022)

HCT 2.0

(December 2022)

Compare among hospitals
View a single hospital
Explore by state
Explore by health system
2011-2019 Medicare Cost Report data
RAND 3.0 price data (2016-2018 aggregate)
2020-2021 Medicare Cost Report data 
RAND 4.0 price data (2018-2020 aggregate) 
Direct Patient Care Labor and benefits costs 
Hospital-level COVID-19 Public Health Emergency funds (available in downloadable excel sheet) 
Operating Profit Margin visualizations 

Additionally, NASHP has made other refinements to the tool. For example, improved accuracy in excluding outliers/ reporting errors, calculating net charity care which includes charity care grants, and assigning appropriate Medicare costs for organ acquisition.

As states increasingly utilize Hospital Cost Tool data to inform policy, NASHP offers supplemental resources explaining the tool’s calculations and outputs, as well as model legislation addressing hospital costs. Users with HCT-related inquiries can view NASHP’s Q&A or email HCT@nashp.org, if needed.

The Hospital Cost Tool was produced by the Coverage, Cost, and Value team at NASHP in collaboration with Rice University’s Baker Institute for Public Policy and Mathematica, with funding from Arnold Ventures.

 
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