The AAMC submitted a statement for the record (PDF) to the House Ways and Means Committee ahead of an April 28 hearing examining hospital costs and the broader health care provider landscape, emphasizing that academic health systems and teaching hospitals face mounting financial pressures while serving as the backbone of the nation’s care delivery, research, and physician training infrastructure. The statement urged lawmakers to reject policies that would undermine access to care, including so-called site neutral payment cuts and proposals to limit nonprofit tax-exempt status, and instead address key cost drivers such as insurer practices, administrative burden, and chronic underpayment from public programs. The AAMC also highlighted the significant investments academic medicine makes in workforce training, research, and communities, noting these contributions extend far beyond traditional measures such as charity care.
During the hearing, lawmakers and witnesses, including executives from HCA Healthcare, CommonSpirit Health, NewYork-Presbyterian, ECU Health, and Protect Our Care, discussed the causes of rising health care costs. Republicans focused heavily on rural reclassification, hospital consolidation, tax-exempt status, and so-called site neutral payment policies, while Democrats pointed to broader systemic factors such as coverage losses and insurer behavior. Witnesses underscored many of the challenges outlined in the AAMC’s statement, including rising labor and supply costs, increasing patient complexity, and administrative burdens like prior authorization and delayed payments. At the same time, they highlighted efforts to improve affordability through innovations such as hospital-at-home programs, telehealth, artificial intelligence, and prevention-focused initiatives, reinforcing the association’s position that sustainable solutions must account for both the financial realities facing providers and the need to invest in long-term, value-driven care.
- Washington Highlights