Congressional Probe Questions Billing Policies

Congressional investigators are auditing the billing practices of the nation’s top 20 hospital chains regarding billing for the uninsured, the Dow Jones Business News Service announced July 16.

Among the chains asked to provide information about billing practices for the the uninsured is Triad Hospitals Inc., which owns Northwest Health System Inc., the parent of Northwest Medical Center of Benton County and Northwest Medical Center of Washington County. Triad also owns Medical Center of South Arkansas in El Dorado and Medical Park Hospital in Hope.

Allegations are that patients not covered by health insurance are expected to pay substantially higher amounts for medical services than health insurers and government-sponsored health plans.

The committee said hospitals often inflate rates they establish for medical service beyond their actual costs, in part because of steep discounts demanded by health insurers. Though health plans negotiate to pay far less than “retail charges,” individual uninsured patients are expected to pay the full “sticker price,” the letter read.