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Calif. hospitals blast new rate-setting proposal for providers
Modern Healthcare: California hospitals are on edge over a bill dropped late Monday that would mandate regulated rate-setting for providers. The measure would use Medicare rates as the benchmark to calculate commercial insurer payments, and would cost state hospitals $18 billion in the first year alone, according to preliminary projections.
The California effort is being pushed by patient advocates and labor unions who say the rising cost of healthcare is cutting into wage growth. It is the first signal from the country's most populous state that legislators are wading into the minefield of addressing healthcare prices as consumers grow increasingly unhappy.
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