Texas Hospital System Threatens 52 Texas Employer Groups

A Texas hospital system has threatened 52 employers by demanding cash upfront on all non-emergency hospital admissions.

Affected employers who sponsor group health insurance for their employees are angry. They plan a concerted effort against the hospital system to include legal action, legislative intervention and publicity.

Regarding the later, public opinion will be an important element in their overall strategy to expose core issues to what is wrong with our current healthcare delivery system.

For the first time the general public will understand why health care costs are out of control.  That is a good thing.

Details will be posted on this website later this week as this story unfolds. We expect the national press will run with this.

Editor’s Note: ERISA mandates that Plan Sponsors¬† have a fiduciary responsibility to pay only fair and reasonable fees. Are hospital fees fair and reasonable? Should a hospital charge $12,000 for an MRI when their cost is less than $300? What is fair and reasonable, and who decides?