Story perspectives

Hospital CEOs Cite Fees, Prices Up 300%, PA Gets $193M

4/30/2026

Summary

Story summary

Hospital CEOs testified before Ways and Means Committee on April 28, 2026, saying fees reflect lower Medicare and Medicaid reimbursements and sicker patients, while Committee chair Jason Smith said hospitals constitute 31 percent of health spending and prices rose 300 percent in two decades.
Democratic members called hearing a deflection from Medicaid cuts removing coverage for 15 million people.
Rural Health Transformation Program will give Pennsylvania $193 million in 2026 to support rural hospitals.

History

Historical Context

Signed by President Bill Clinton in 1997, the Balanced Budget Act—introduced by Rep. John Kasich—cut Medicare hospital payments to meet a five-year savings target of $116.4 billion and a ten-year goal of $393.8 billion, with Medicare reductions accounting for $112 billion. Those cuts created lasting reimbursement pressures that today’s hospital CEOs cite as a driver of rural-hospital funding battles such as Pennsylvania’s $193 million Rural Health Transformation allocation.

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Story summary

Hospital CEOs testified before Ways and Means Committee on April 28, 2026, saying fees reflect lower Medicare and Medicaid reimbursements and sicker patients, while Committee chair Jason Smith said hospitals constitute 31 percent of health spending and prices rose 300 percent in two decades.
Democratic members called hearing a deflection from Medicaid cuts removing coverage for 15 million people.
Rural Health Transformation Program will give Pennsylvania $193 million in 2026 to support rural hospitals.

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