US judge upholds challenge to rule requiring hospitals to post prices

Amy Baxter | | Health Exec | Policy & Regulations
A cardiology practice in Florida and several of its cardiologists have agreed to pay $2 million to resolve allegations that they violated the False Claims Act and committed fraud. As a part of the agreement, there has been no determination of liability.

A challenge to a Trump administration rule that requires hospitals to post their prices for services online has been defeated after a U.S. judge granted a summary judgment to HHS.

The rule, which was finalized at the end of 2019, requires hospitals to publish a standardized list of charges for the services they provide. The changes, which will provide unprecedented insight into the secret pricing world of the healthcare system, are scheduled to take effect January 2021.

The rule was met with major backlash from the health industry, and CMS’ own estimates put the cost to individual hospitals at $12,000 and 150 hours for the first year alone. For more than 6,000 hospitals, compliance with the rule will cost $71.4 million and 900,3000 hours, according to the agency’s estimate.

The American Hospital Association led a legal challenge to stop the rule from going into effect, arguing it went against First Amendment rights and intents of the Affordable Care Act. With the judgment from Judge Carl Nichols with the U.S. District Court for the District of Columbia keeping the rule intact, the AHA has said it will appeal the decision and continue to fight against the rule.

“Today’s court decision is a resounding victory for President Trump and HHS’s agenda to lower Americans’ healthcare costs,” HHS Secretary Alex Azar said in a statement. “President Trump has been clear: American patients deserve to be in control of their healthcare. With today’s win, we will continue delivering on the President’s promise to give patients easy access to healthcare prices. Especially when patients are seeking needed care during a public health emergency, it is more important

Amy Baxter
Amy Baxter

Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."

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