Unmasking the Real Cost Drivers in U.S. Healthcare: A Critical Examination of Hospital Pricing and Policy Reform

  • CMPI | by: Peter Pitts and Jerry Rogers |
  • 06/23/2025 12:00 AM
READ THE FULL REPORT HERE

Abstract

This report critically examines the role of hospitals—particularly nonprofit institutions—in driving unsustainable healthcare costs in the United States. With hospital care consuming over $1.5 trillion in 2023 alone, the report explores structural inefficiencies, opaque pricing practices, fee-for-service incentives, and executive excesses that contribute to skyrocketing healthcare costs. Drawing on the analyses of both recent legislative debates and systemic trends, this paper merges policy critique with economic examination to argue for urgent and focused reform.

Introduction

Healthcare in the United States is in a crisis of affordability and accountability. In 2023, Americans spent more than $1.5 trillion at hospitals, accounting for nearly one-third of the nation’s total healthcare expenditures. While attention is often placed on pharmaceutical companies and insurance providers, hospital systems, especially nonprofit institutions, are the primary driver of healthcare cost inflation and systemic inefficiency.


 
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