'Now is the time to stop these inflationary prices and stop the hospitals from reaping billions of dollars from our friends and labor, from the private sector and from the city of New York,' said Julie Menin, the bill's prime sponsor.
The new office would also be tasked with operating a public website that provides information on the costs of hospital procedures and summarizes the cost transparency of each hospital.The idea for the bill builds off of a new federal rule called the Hospital Price Transparency Rule, which went into effect last year and mandates that every single hospital in this country post all of their prices.
Menin’s office argued in a background statement that inflated hospital costs are the single most impactful reason for healthcare cost increases, and for public sector workers this costs the city billions of dollars. The legislation was informed by a recent report, commissioned by the 32BJ union, which found that the city could be overpaying private hospitals by $2 billion annually.
“Before the [federal] transparency law, we couldn’t see what those prices actually were. Now we can see what this hospital is charging. So it just makes fiscal sense, right? To design a network that would save the city money and get workers better care,” said Kane.
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