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Hospitals Vow to Sue Trump Administration Over Price Transparency Final Rule

By Jack O'Brien  
   November 15, 2019

Four major hospital associations say they will challenge the Trump administration in federal court over the final rule.

Hours after the Trump administration announced a final rule on hospital price transparency Friday, four major hospital associations vowed to challenge the policy in federal court. 

In a joint statement, the American Hospital Association, Association of American Medical Colleges, Children's Hospital Association, and the Federation of American Hospitals said they will file a lawsuit with member hospitals, arguing that the Trump administration exceeded its legal authority.

The final rule, released Friday morning, requires hospitals to provide patients with easily accessible information about standard changes for items and services offered.

This includes making all standard changes available in a single data file that can be read by other computer systems, as well as making "shoppable services" information available on their websites in a consumer-friendly manner. 

The joint statement referred to the final rule as a "setback" for provider efforts to give patients relevant information for their care decisions and said it will "introduce widespread confusion, accelerate anticompetitive behavior among health insurers, and stymie innovations in value-based care delivery."

The Trump administration has faced several high-profile health policy lawsuits, enduring District Court losses on a wide range of issues, including Medicaid work requirements, Association Health Plans, and mandatory price disclosures for certain drugs in direct-to-consumer TV advertisements

Related: CMS Issues Final Rule on Hospital Price Transparency, Pushes Effective Date to 2021

Related: Timeline of Trump's Push for Healthcare Price Transparency

Related: Enforcing Hospital Price Transparency: Is $300 Max Daily Fine Big Enough?

Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.


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