WA hospitals can cut costs, improve patient care

An April 7 op-ed, “Cuts to Washington hospitals will hurt children statewide,” doesn’t tell the full story. Hospitals say that legislative proposals will put pressure on their bottom lines. But Washington families have been hammered by high health costs for decades. State legislators aren’t proposing to “cut” care – they’re asking the health industry to stop treating patients like blank checks. 

It’s time for hospitals and other health industry players to face an uncomfortable truth: Washington families can’t bear the high price of health care. 

Health care cost growth in our state has outpaced wage growth for decades. In a 2024 survey of more than 1,000 Washingtonians, more than half of those surveyed reported skipping care because they couldn’t afford it. Nearly one-third of households reported having medical debt. Public servants, such as teachers, have seen health care costs increase by nearly 7% each year.

We agree that some proposals to cut health spending are irresponsible. Congressional plans to cut $880 billion from Medicaid and other essential programs would be catastrophic for patients and hospitals alike. One in four Washingtonians, including children, people with disabilities, elders and low-wage workers, depend on Medicaid for their care. 

But here in the other Washington, legislators have a more thoughtful proposal to manage known cost drivers. Recent state data shows that per-person health spending jumped 30% over just six years, driven by a 21% increase in prices. Rising hospital prices were a key contributor to this growth. Some Washington hospitals charge three or four times what Medicare pays for the same care. That money comes straight from the pockets of working families, from local businesses and our state budget.

Instead of letting health costs continue to rise unchecked, why not develop a targeted solution to rein in the highest outlier prices, while reinvesting in needed care? Why not start with the health coverage the state provides for teachers and other public servants, ensuring that we’re prudent stewards of taxpayer dollars? Why wait any longer, when family budgets and the state budget are under strain? 

Sen. June Robinson, D-Everett, and Rep. Nicole Macri, D-Seattle, aren’t waiting: They have a plan. Senate Bill 5083 sets a reasonable limit on what hospitals can charge public worker plans, saving the state hundreds of millions of dollars and reducing out-of-pocket costs for families. The bill reinvests some of those savings in behavioral health and primary care access. 

We know this approach works. Oregon proved it in 2019 when it adopted a similar policy and saved $100 million in two years while decreasing worker out-of-pocket costs by nearly 10% — without harming care. 

Hospitals say they can’t find any efficiencies. We don’t buy it. The Legislature just invested $1 billion in hospitals by increasing Medicaid rates, starting last year. The United States spends more on health care yet has worse patient outcomes than any other developed country. Talented, committed people lead our local hospitals – surely we can find some ways to drive better value for patients. 

There’s an old saying that if you’re not at the table, you’re on the menu. Our health industry has ignored the realities working families face for too long. We should know: We were state health policy insiders for decades. We’ve watched as the local health care we once knew has been swallowed up by big business and venture capital. We’ve worked in hospitals, and we love our local hospitals – but they and other industry players need to be part of the solution. 

We’re proud of the progress we’ve made in our state – 95% of Washington residents now have coverage – but that coverage isn’t worth much if people can’t afford to use it.  It’s time to take a different approach. 

[Editor’s note: Mark Stensager, former director of Seattle-King County Area Agency on Aging and a former hospital executive, contributed to this op-ed.]