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03/08/2006

Is the American Hospital Association Deliberately Trying to Deceive the Public?
'60 Minutes' Segment Exposes AHA’s 'State of Denial' as Embattled Trade Association Challenges Powerful Senator

LOS ANGELES -- Consejo de Latinos Unidos, a national advocacy group that educates and assists the uninsured, accused leaders of the American Hospital Association (AHA) of "doing a great disservice to their members while creating serious public and political setbacks for the hospital industry" after an AHA senior vice president twice denied that hospitals overcharge uninsured patients and called the abuse accusations by a powerful U.S. Senator "nothing of the sort" on a segment last Sunday night on CBS’ news magazine, 60 Minutes.

"Is the AHA deliberately trying to deceive the public?" asked K.B. Forbes, Executive Director of the Consejo. "The AHA now says that hospitals charge Medicare and insurance companies less. We say hospitals charge the uninsured more. What’s the difference? Nothing."

In December 2002, the American Hospital Association acknowledged that hospital price gouging of the uninsured and aggressive collection practices were a problem. But on last night’s broadcast, Carmela Coyle, senior vice president for policy of the American Hospital Association, appears to have reversed the organization’s position. Coyle twice denied that hospitals price gouge the uninsured, claiming everyone is charged the same.

Powerful U.S. Senator Charles Grassley, Chairman of the Senate Finance Committee, which is investigating hospital charges and collection practices, said on the broadcast that he found hospitals had "institutional bias" against the uninsured and that he knew of "widespread" problems.

Coyle dismissed Grassley’s claims as "nothing of the sort" adding that "dramatic" changes were made in the last year.

"What an embarrassment to see the AHA in a state of denial while lecturing a Senator that he is wrong," said Forbes. "The leaders of the AHA are doing a great disservice to their members while creating serious public and political setbacks for the hospital industry. The only dramatic change we have seen in the last year is that many disgruntled and good- minded members of the AHA are now contacting the Consejo directly. The AHA appears to be representing the best interests of its worst members."

According to published reports, hospitals charge uninsured patients three or four times more than what the hospital would accept as payment in full from an insurance company.