Increasing Hospital Price and Quality Transparency

Florida Hospital Prices Are the Highest in the Nation

Data from the RAND Corporation underscores what Florida employers have been experiencing for years: healthcare prices, not utilization, are the primary driver of rising costs.

According to RAND’s Hospital Price Transparency Study 5.0 released in May 2024, Florida is tied with Georgia as the state where employers pay the most for hospital services. 

 

What the Data Shows

• Florida ranks #1 as the highest-cost state for employers purchasing hospital services
• Employers are paying more than three times Medicare rates for hospital and physician services combined (“all in” prices)
• Prices vary significantly across providers and markets, even for the same services

This “all-in” view is particularly important, as it reflects the total cost of care, not just hospital facility pricing, but also the professional fees that are often billed separately.

 

Why This Matters for Employers and Employees

These findings confirm a consistent pattern – costs are driven by prices, not increased use of services. Even highly engaged employers implementing innovative benefit designs and cost-management strategies continue to face unsustainable cost growth.

 

A Market That Is Not Functioning As Intended

The RAND findings reinforce broader concerns about the healthcare market:

• Wide price variation that is not tied to quality
• Market consolidation that limits competition
• Contracting practices that restrict employer choice and flexibility

 

The Path Forward

Addressing high healthcare costs in Florida will require a multi-faceted approach, including:

• Greater price transparency that is usable and enforceable
• Policies that promote competition and prohibit anti-competitive practices
• Payment approaches that align with value and affordability
• Strong collaboration between employers, policymakers, and patient advocates

The Florida Alliance for Healthcare Value is committed to advancing solutions that improve affordability, enhance access, and ensure better outcomes for all Floridians.

 

Contribute to Future Research

The RAND Corporation is currently recruiting employers and plan sponsors to participate Round 6 of its Hospital Price Transparency Study.

Expanding participation, particularly from Florida employers, is critical to ensuring that future analyses accurately reflect the realities of our market and help inform effective policy solutions.

Employers interested in contributing their data or learning more about participation are encouraged to contact:

Karen van Caulil
President & CEO, Florida Alliance for Healthcare Value
Karen@flhealthvalue.org

Your participation can help drive the data needed to advance meaningful reform.