The AAMC submitted a statement for the record to the House Energy and Commerce Health Subcommittee ahead of its March 18 hearing, “Lowering Health Care Costs for All Americans: An Examination of the U.S. Provider Landscape,” outlining the significant financial pressures facing academic health systems and teaching hospitals and urging policymakers to address the broader drivers of health care costs. In its statement, the AAMC emphasized the unique role its members play in training the physician workforce, conducting lifesaving research, and caring for the most complex and vulnerable patients, while warning that inadequate reimbursement, rising labor and supply costs, and looming federal funding cuts are pushing many institutions to the brink. The AAMC also called on lawmakers to reject so-called site-neutral payment cuts, protect the 340B Drug Pricing Program, and advance policies that support physician training, including expansion of Medicare-supported graduate medical education.
During the hearing, lawmakers and witnesses debated the primary drivers of rising health care costs, with several members focusing on hospital pricing and consolidation, while others highlighted the role of commercial insurers. The AAMC’s statement underscored that insurer practices, including prior authorization, delayed and denied payments, and market consolidation, impose significant administrative and financial burdens on providers and can delay or restrict patient access to care. The discussion also touched on opportunities to improve affordability through innovation, aligning with the AAMC’s emphasis on solutions such as hospital-at-home models, advanced alternative payment models, and investments in prevention and physician training.