CentraCare Hospitals Among Minnesota Facilities Warned by Feds Over Price Transparency

(KNSI) — Four CentraCare hospitals in central Minnesota are among more than 500 nationwide that the federal government has warned over price transparency.

CentraCare’s St. Cloud, Long Prairie, Melrose and Paynesville hospitals all appear on a list of facilities cited for failing to fully comply with federal rules that require hospitals to post clear, accessible pricing. The four are among 18 Minnesota hospitals on the list.

Patient advocates allege corporate hospital systems routinely charge patients and private insurers roughly three times what Medicare pays for the same services, making hospital prices one of the biggest drivers of rising health care costs in the country. Watchdog group Hospital Watch says in a press release that without clear and enforceable price transparency, hospitals can continue “hiding inflated prices behind opaque billing practices, facility fees, and confusing estimates.”

The warnings stem from a broader federal enforcement effort. The Centers for Medicare and Medicaid Services has sent hospitals warning notices or Corrective Action Plan requests since April, setting deadlines for them to fix their pricing disclosures or risk penalties. Fines can run as high as $2 million a year for hospitals that don’t come into compliance. Hospital Watch circulated the Minnesota breakdown of the federal list.

Federal rules require hospitals to publish prices online so patients, employers and insurers can estimate the cost of care before a bill arrives.

In a statement emailed to KNSI News, CentraCare says:

“CentraCare is committed to helping patients understand the cost of their care.

“The issue referenced in the recent CMS warning letters relates to updated federal formatting requirements for machine-readable pricing files published on our website. While CentraCare was already posting the required pricing information, updated regulations that took effect earlier this year required a different file format, and some of our files did not meet those new technical specifications.

“The CentraCare hospitals included on the CMS list have since been brought into compliance with the updated formatting requirements.

“We will continue working to ensure our files meet evolving federal requirements while maintaining our commitment to transparency and patient support.”

CentraCare also emailed a statement on behalf of the Minnesota Hospital Association:

“Nonprofit hospitals and health systems are committed to being open and transparent about the cost of care. We know that patients are deeply concerned about health care affordability and want all the information they can get. Every day, our member hospitals work to help patients understand what their care will cost and to connect them with financial counseling, billing support and assistance programs. Every one of our members has also been making price information easily available online for years, making every effort to comply with constantly shifting regulation. A recent report that a dozen or more of our members may have been out of compliance with federal requirements did not reflect the current situation: a survey of our members this week found that all but two hospitals and health systems were already in conformance with federal regulations, or were awaiting acknowledgement of their compliance. Our members also contribute to the Minnesota Hospital Association’s robust, statewide hospital price comparison tool that lets patients compare current, condition-by-condition charges at any Minnesota provider.”

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