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A patient room at Massachusetts General Hospital. Photo: David L. Ryan/The Boston Globe via Getty Images

Our recent analysis of hospital finances showed many of the largest tax-exempt hospitals are faring quite well even as they care for more people with government insurance.

The big picture: Hospitals have long argued they have to charge patients with commercial insurance more to make up for the lower payments they receive from Medicare and Medicaid, a theory known as "cost-shifting." But evidence suggests that theory doesn't hold any weight.

What they're saying: Tom Nickels, a top lobbyist for the American Hospital Association, submitted a statement in response to our analysis that said hospitals "need positive margins to keep pace with increasing health care needs," and their investment returns partially offset "underpayments from Medicare and Medicaid."

Yes, but: The AHA did not address issues of hospital consolidation and negotiating leverage, which studies show lead to higher commercial hospital prices regardless of what Medicare and Medicaid pay.

  • "Commercial prices are purely based on elasticity of demand in the local market," said Glenn Melnick, a health economist at the University of Southern California who reviewed the analysis. "It's not driven by what they're being paid by the other guys."

The bottom line: "If you've got market power, you can get above-market increases forever," Melnick said.

Go deeper

Big European soccer teams announce breakaway league

Liverpool's Mohamed Salah (L) after striking the ball during the UEFA Champions League Quarter Final Second Leg match between Liverpool F.C. and Real Madrid at Anfield in Liverpool, England, last Wednesday. Photo: John Powell/Liverpool FC via Getty Images

12 of world soccer's biggest and richest clubs announced Sunday they've formed a breakaway European "Super League" — with clubs Manchester United, Liverpool, Barcelona Real Madrid, Juventus and A.C. Milan among those to sign up.

Details: So far the breakaway league that's due to start in August consists of six clubs from England, three from Spain and three from Italy.

3 hours ago - Politics & Policy

Senate Democrats settling on 25% corporate tax rate

Sen. Joe Manchin (D-W.Va.). Photo: Chip Somodevilla/Getty Images

The universe of Democratic senators concerned about raising the corporate tax rate to 28% is broader than Sen. Joe Manchin, and the rate will likely land at 25%, parties close to the discussion tell Axios.

Why it matters: While increasing the rate from 21% to 25% would raise about $600 billion over 15 years, it would leave President Biden well short of paying for his proposed $2.25 trillion, eight-year infrastructure package.

GOP pivot: Big business to small dollars

Illustration: Annelise Capossela/Axios

Republican leaders turned to grassroots supporters and raked in sizable donations after corporations cut them off post-Jan. 6.

Why it matters: If those companies hoped to push the GOP toward the center, they may have done just the opposite by turning Republican lawmakers toward their most committed — and ideologically driven — supporters.