HEALTHCARE COSTS
Ninth Circuit Wields the First Amendment to Strike Down California Dialysis Law
Source Fellow May 15, 2026
On Tuesday, April 7, 2026, the 9th U.S. Circuit Court of Appeals struck down key provisions of California’s Assembly Bill 290 (2019), a law that capped the reimbursement rates dialysis providers could collect from private insurers for patients receiving premium assistance from charitable organizations and required related patient disclosures. The court held that the reimbursement cap and disclosure provisions violated the First Amendment by burdening the American Kidney Fund’s right to associate with dialysis providers DaVita and Fresenius, and that California had not narrowly tailored the law to its asserted […]
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New Mexico Enacts HB 306 – Threading the Needle on Facility Fees
Anna Chau April 7, 2026
On March 6, 2026, New Mexico enacted HB306, the “Fair Pricing for Routine Medical Care Act”, to prohibit charging of healthcare facility fees for certain services, to require the disclosure of facility fees to patients, and to require the reporting of facility fees to the all-payer claims database. The bill prohibits hospitals and clinics from charging outpatient facility fees, which many hospital systems add to bills for healthcare services at facilities they own. The bill imposes special requirements for uninsured patients, as well as for rural clinics and emergency departments […]
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The Source Roundup: April 2026 Edition
Leelah Klauber April 1, 2026
Antitrust and Market Competition Playing Favorites — State Protection of Academic Medical Centers from Antitrust Oversight New England Journal of Medicine Jaime S. King, Katherine L. Gudiksen, Anna D. Sinaiko The authors explore a new trend with U.S. academic medical centers (AMCs) merging with nonacademic hospitals and health care systems. These mergers pose risks of price increases and other competitive harms. Regulators should review all transactions involving an AMC and ensure that any promised benefits from consolidation do not harm the public. Notably, at least four states have laws explicitly […]
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The Source Roundup: March 2026 Edition
Leelah Klauber March 1, 2026
Healthcare Markets and Acquisitions Health Insurance After Corporatization —What Next? New England Journal of Medicine Perspective Leemore Dafny, Ph.D. The author explores whether the corporatization of the U.S. health insurance industry (i.e., the consolidation of insurers within and across markets) contributes to the industry’s poor performance among the commercially insured population. The answer is maybe. One key driver of such consolidation is the “technology of insurance.” Economies of scale drive insurance consolidation by lowering costs and stabilizing risk for larger insurers, but beyond a certain size, these advantages fade, and […]
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The Source Roundup: February 2026 Edition
Anna Chau February 1, 2026
Healthcare Costs Growth In National Health Expenditures: It’s Not The Prices, Stupid Health Affairs Michael Chernew The article seeks to identify the causes of rising healthcare costs by assessing trends across sectors, including coding intensity, AI medical services, product costs, and healthcare consolidation and administrative shifts. Chernew reports that coding intensity has increased and explores the possible relationship to AI medical services, though notes it may be too early to identify any trends. Broad healthcare infrastructure changes show conflicting trends in prices, and the author advocates for more focus on […]
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The Source Roundup: January 2026 Edition
Megan Bochum January 1, 2026
Antitrust Enforcement Fixing a Broken System: Policy Responses to Hospital Acquisitions of Physician Practices That Limit Health Care Access for U.S. Consumers Progressive Policy Institute Diana Moss, Alix Ware, Lief Lin By 2023, more than half of all independent physician practices (IPPs) were no longer independent, but owned by hospitals, health systems, or corporate entities, meaning 78% of all U.S. physicians were employed by large provider organizations. Loss of IPPs through vertical consolidation leads to higher prices, reduced access, loss of physician autonomy, and reduced patient choice. This study highlights […]
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A Breakdown of CHA’s Case Against OHCA’s Hospital Spending Targets
Bruce Allain, Managing Editor November 17, 2025
This post is part of our ongoing coverage of the CHA v. OHCA lawsuit. See case page here. In this post, we examine the claims made by the California Hospital Association (CHA) in its recent lawsuit filed against the California Office of Health Care Affordability (OHCA) regarding OHCA’s plan to implement spending targets for hospitals (Case # CPF25519370). While many stakeholders, including CHA, the California Medical Association (CMA), and others, have expressed concerns about the spending targets announced by OHCA and the methodology used to establish them, dissatisfaction with an administrative […]
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2025 California Healthcare Legislative Recap: Key Bills Enacted and Vetoed
Kassie Williams November 8, 2025
October 12 marked the deadline for the California Governor to sign or veto legislation passed during the 2025 California legislative session, so we now know the fate of this year’s healthcare legislation. Much of the session’s efforts were focused on ensuring support of Californians in the face of massive federal cuts to social programs, Los Angeles wildfires, a potential budget deficit of over $12 billion, and the state’s highly publicized push to get Proposition 50 passed, which will redraw Congressional district maps. Lawmakers introduced an ambitious slate of bills aimed […]
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California Hospital Association Files Suit Against OHCA Spending Targets
Bruce Allain, Managing Editor October 19, 2025
On October 15, 2025, the California Hospital Association (CHA) filed suit against the California Office of Health Care Affordability (OHCA) (and affiliated defendants) over claims that OHCA’s spending targets are arbitrary, irresponsible and single out hospitals, and will severely disrupt hospital services, starving hospitals of needed resources. The California Legislature created OHCA in 2022 and authorized it: to analyze healthcare markets for cost trends and drivers of spending, to set and enforce cost-growth benchmarks for the state, and to review and assess the impact of mergers, acquisitions, affiliations, and other […]
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Vermont Enacts Significant Legislation Addressing Healthcare Costs and Hospital Budgets
Anna Chau August 8, 2025
On June 12th, 2025, Vermont Governor Phil Scott signed S0126 into law, in which the state aims to improve quality of care and healthcare access by stabilizing healthcare costs through Medicare-based price regulation, creating global hospital budgets, and establishing a more stable and high-quality state healthcare network. The new law intends to do so through controlling costs for commercial insurance, managing hospital costs by using price caps, and overseeing and assessing administrative processes. The law tasks the Green Mountain Care Board (GMCB) with accomplishing these objectives. Vermont’s current system for […]
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