Hospital execs exhorted to lead the affordability movement from the front

The American Hospital Association is out with a set of strategies for making healthcare more affordable—not only within hospitals but also across U.S. healthcare as a whole. 

The gameplan walks hospital leaders through a number of actionable and achievable aims to which they can contribute.

Major focuses include improving the health of individuals and communities, transforming care delivery, reducing administrative waste, lowering drug and device costs and innovating to improve care outcomes.

In announcing the plan, AHA President and CEO Richard Pollack, MPA, salutes healthcare executives who are helping lead the way on affordability and encourages them to keep doing what they’re doing. 

Six key passages from Pollack’s message:

‘Hospitals and health systems see the impact of high costs every day on the patients and families we serve. Hospitals are not waiting to do their part.’ 

Across the nation, they are already implementing efforts to make healthcare more affordable and accessible, as well as providing solutions that could lower costs across the entire health care system.

‘Hospitals are investing heavily in prevention and care coordination programs that help patients manage chronic conditions and reduce avoidable hospital visits.’ 

New models like hospital-at-home, telehealth and remote monitoring are bringing care directly to patients, making it easier to get the right care at the right time.

‘Hospitals are unique within the healthcare system.’ 

They have the responsibility of providing a full spectrum of services 24 hours a day, seven days a week. They must maintain highly trained staff, advanced equipment and readiness for any emergency, whether that’s a natural disaster or a mass-casualty event.

‘That responsibility comes with substantial fixed costs.’ 

In 2025, hospital expenses increased 7.5%, about twice as fast as hospital reimbursements for patient care. This means hospitals absorbed much of the increase instead of shifting it to patients or payers. 

‘Administrative burdens from insurers add unnecessary expense and cut into clinicians’ time spent focusing on patients.’ 

In addition, looming policy changes threaten to increase the number of uninsured and underinsured Americans who will turn to emergency departments for care. This will drive up costs and wait times for everyone.

‘Despite these pressures, hospitals remain steadfast in their mission to advance the health of individuals and communities.’ 

Hospitals cannot solve the affordability challenge alone. [Success] will require collaboration from all stakeholders, including drug companies, commercial insurers, suppliers, employers, government, patients and others.

“Hospitals and health systems are committed to ensuring that high-quality care is accessible and affordable for every American,” Pollack adds. “We are leading the way through innovation, collaboration and a relentless focus on our patients.”

Peruse the AHA affordability gameplan and supporting AHA resources.