UCLA Study Links Extreme Hospital Markups to Worse Outcomes After Elective Surgery

Overview

• Roughly 10% of hospitals were identified as high-markup facilities, with charges reaching up to 17 times estimated costs versus an average of about three times elsewhere.
• Patients treated at these hospitals had 45% greater odds of major complications and a 33% higher risk of non‑elective readmission within 30 days.
• High-markup hospitals were predominantly for-profit, investor-owned institutions located in large metropolitan areas.
• The analysis used 2022 Nationwide Readmissions Database data from about 1,960 hospitals for four elective operations, covering approximately 362,400 patients including roughly 42,600 at high-markup centers.
• Authors note data limits on negotiated prices and cost structures and call for policy action, pointing out that only Maryland and West Virginia currently regulate hospital pricing.