Hospital industry

Hospitals are going to war against Trump's price transparency push

Illustration of a hospital with a dollar sign
Illustration: Lazaro Gamio/Axios

Hospitals sued the Trump administration yesterday over its requirement that they disclose their negotiated rates, the latest of the industry's moves to protect itself from policy changes that could hurt its revenues.

Why it matters: Hospitals account for the largest portion of U.S. health costs — which patients are finding increasingly unaffordable.

Hospitals sue Trump administration over price transparency rule

An ambulance is parked outside of a hospital emergency department.
Hospitals are taking the price transparency rule to court. Photo: RJ Sangosti/The Denver Post via Getty Images

A consortium of hospitals has filed a lawsuit against the Trump administration, arguing that a new rule — which will require hospitals in 2021 to publicly post prices that are negotiated with health insurers — is unconstitutional and unlawful federal overreach.

Why it matters: This lawsuit was expected, but solidifies how the hospital industry is opposed to any regulation that would force them to reveal confidential prices.