Lowering Health Care Costs for All Americans: An Examination of the U.S. Provider Landscape

Health Care Costs and Drug PricingHouse Energy and Commerce Subcommittee on Health · March 18, 2026 · 119th Congress
The House Energy and Commerce Subcommittee on Health held this hearing — the third in the committee's Health Affordability Series — to examine the U.S. Begins at ▶ 0:15:57
Transcript
Highlights

Title

House hearing examines hospital and physician consolidation's effect on health costs

Purpose

The House Energy and Commerce Subcommittee on Health held this hearing — the third in the committee's Health Affordability Series — to examine the U.S. health care provider landscape, including hospital and physician consolidation, price transparency, the 340B drug pricing program, and Medicaid cuts under H.R. 1. Witnesses from the American Hospital Association, American Medical Association, American Academy of Family Physicians, Purchaser Business Group on Health, a practicing neurosurgeon, and a disability-services advocate testified on drivers of unaffordability and potential fixes. Democrats used the hearing to criticize Medicaid cuts and the expiration of enhanced ACA premium tax credits, while Republicans focused on consolidation, price transparency, and the physician-owned hospital ban. Begins at▶ 0:15:57

Who spoke

• Chairman Griffith (R-VA)▶ 0:15:57: Opened by describing provider market consolidation and limited patient choice▶ 0:17:07, criticized the ACA's ban on growth of physician-owned hospitals▶ 0:17:36, and later questioned witnesses on physician-owned hospital models for rural access▶ 3:02:46 and insurer negotiating leverage▶ 3:07:06.

• Rep. Diana DeGette (D-CO), Ranking Member▶ 0:20:36: Argued H.R. 1 cut over $1 trillion from Medicaid and failed to extend enhanced premium tax credits▶ 0:21:32, cited 75% of uninsured adults skipping care due to cost▶ 0:22:53, and later pressed Merrill on Colorado HCBS cuts▶ 1:14:17 and Pollack on emergency-room cost shifting▶ 1:16:33.

• Chairman Brett Guthrie (R-KY), Full Committee▶ 0:25:53: Shared his wife's $28,000 six-hour hospital bill (insurance paid $27,500) and a subsequent debt-collector dispute over an unpaid bill▶ 0:26:47▶ 0:29:07 as an example of pricing opacity, and later pressed Pollack and Mitchell on list-price distortion in an employer's pharmaceutical markup▶ 1:19:22▶ 1:21:17.

• Rep. Frank Pallone (D-NJ), Ranking Member Full Committee▶ 0:31:15: Said Republicans cut over $1 trillion from Medicaid/Medicare to fund tax breaks while proposing rule changes raising ACA deductibles to $31,200▶ 0:33:15, and entered letters into the record on Medicaid funding withholdings in Minnesota and ten other states▶ 0:35:13.

• Richard Pollack, AHA President/CEO▶ 0:36:52: Testified hospital drug expenses rose over 13% in 2025 while hospital prices rose only 3.3%▶ 0:41:28, said hospitals are "price takers" not receiving billed list prices▶ 1:19:53, and acknowledged uncompensated care will grow with coverage losses▶ 1:17:01.

• Dr. David Aizuss, AMA Board Chair▶ 0:42:54: Cited a 33% inflation-adjusted decline in Medicare physician payment since 2001▶ 0:45:07, called for preventing the scheduled 2.5% Medicare cut▶ 0:45:32 and repealing restrictions on physician-owned hospitals▶ 0:46:31, and discussed AMA's vaccine integrity collaboration▶ 2:30:09.

• Shawn Martin, AAFP EVP/CEO▶ 0:47:47: Said nearly 75% of family physicians are now hospital/entity-employed, up from ~35% twenty years ago▶ 0:50:12, and offered six recommendations including doubling primary care investment▶ 0:52:07.

• Elizabeth Mitchell, Purchaser Business Group on Health▶ 0:53:11: Said her coalition spends over $350 billion annually covering 25 million Americans▶ 0:54:00, testified consolidation drives prices up 3–60% with no quality benefit▶ 1:59:57, and said only about 69% of hospitals fully comply with price transparency rules▶ 3:00:20.

• Dr. Anthony DiGiorgio, UCSF neurosurgeon▶ 0:56:40: Argued Section 601 of the ACA and Stark Law create an "untenable double standard" favoring corporate systems over independent physicians▶ 0:59:27, and cited a MedPAC finding that an echocardiogram is reimbursed 194% more in a hospital than a freestanding office▶ 0:59:57.

• Barbara Merrill, ANCOR CEO▶ 1:01:31: Told the story of Susan and Cameron Hartley to illustrate the value of home and community-based services▶ 1:03:24, and said HCBS costs about $70,000/year per person versus $395,000 for institutional care▶ 1:05:06.

• Rep. Gilbert Ray "Buddy" Carter (R-GA)▶ 1:50:36: Pressed Pollack on 340B contract-pharmacy proliferation, citing 5,000 such pharmacies in Orlando alone▶ 1:52:02, and said the program's costs must be made transparent even as he supports its intent▶ 1:53:52.

• Rep. Nanette Barragán (D-CA)▶ 1:56:08: Cited a nearly $1 trillion Medicaid cut and questioned Pollack on Sutter Health's 39-hospital acquisition following a prior $575 million antitrust settlement▶ 1:58:03.

• Rep. John Joyce (R-PA)▶ 2:01:31: Cited CMS data showing total health spending topped $5 trillion with hospital costs the fastest-rising share▶ 2:01:31, and questioned witnesses on referral restrictions ("leakage") within employed-physician systems▶ 2:02:59.

• Rep. Marc Veasey (D-TX)▶ 2:07:05: Focused on the physician shortage, noting an expected 86,000-physician gap and a new $50,000 annual cap on federal medical student loans▶ 2:08:33.

• Rep. Mariannette Miller-Meeks (R-IA)▶ 2:12:18: Noted Medicare physician reimbursement has declined over 30% since 2001 while hospital inpatient base rates rose 30% since 2016▶ 2:16:35, and questioned Aizuss and DiGiorgio on site-of-service cost differences.

• Rep. Greg Landsman (D-OH)▶ 2:17:38: Asked Pollack and Martin whether the country is in a health care crisis and what is driving it, eliciting responses on underpayment, workforce shortages, and consolidation▶ 2:18:33▶ 2:19:20.

• Rep. Kat Cammack (R-FL)▶ 2:22:50: Challenged Pollack's claim that consolidation lowers costs, citing evidence that savings aren't passed to patients▶ 2:25:09, and pressed Mitchell on transparency enabling price-matching upward in consolidated markets▶ 2:27:04.

• Rep. Troy Carter (D-LA)▶ 2:28:23: Criticized Medicaid cuts and vaccine misinformation, and questioned Aizuss about the AMA-Vaccine Integrity Project collaboration and a measles outbreak of nearly 1,000 cases in South Carolina▶ 2:33:00.

• Rep. Cliff Bentz (R-OR)▶ 2:33:48: Raised a projected nursing shortage of 200,000–450,000 and questioned witnesses on causes and AI's potential role▶ 2:34:15▶ 2:36:51.

• Rep. Lizzie Fletcher (D-TX)▶ 2:38:56: Criticized H.R. 1 and ACA credit expiration, and raised concerns about immigration enforcement in hospitals and a new Medicaid data-sharing policy deterring immigrants from seeking care▶ 2:42:12.

• Rep. Nick Langworthy (R-NY)▶ 2:56:53: Discussed advanced Explanation of Benefits proposals with Pollack and asked Mitchell about usability of hospital price transparency data▶ 2:58:16▶ 3:00:52.

• Rep. John James (R-MI)▶ 3:08:00: Promoted his "Patients Deserve Price Tags Act" and questioned Mitchell on whether mandatory price disclosure would lower costs system-wide▶ 3:09:22.

Key moments

• Guthrie described his wife's kidney-stone hospital stay billed at $28,000 for under six hours, with insurance paying $27,500 and the family $500, followed by a debt collector contacting them over an unreported balance that had tripled to about $2,782▶ 0:26:47▶ 0:29:32.

• DiGiorgio cited MedPAC data showing an echocardiogram is reimbursed 194% more in a hospital setting than in a freestanding office, and said hospital acquisitions of independent practices are linked to a roughly 14% increase in Medicare spending▶ 0:59:57▶ 2:26:06.

• Martin testified nearly 75% of family physicians are now employed by hospitals or other entities, up from about 35% twenty years ago▶ 0:50:12.

• Merrill said home and community-based services cost about $70,000 per person annually versus $395,000 for institutional care, and cited 552,000+ Americans on state HCBS waiting lists▶ 1:05:06▶ 1:05:57.

• Pollack disclosed that private equity, not hospitals, has been the largest driver of physician-practice acquisitions over the past four years▶ 1:43:01.

• Cammack and Mitchell sparred over whether consolidation lowers costs: Pollack cited a 3.3% operating-cost reduction from system mergers, while Mitchell countered that all available evidence shows consolidation raises prices 3–60% with no quality gain▶ 2:25:09▶ 2:25:36.

• Dr. Ruiz, an emergency physician, walked Pollack and Aizuss through a hypothetical hospital closure, eliciting acknowledgment that behavioral health, obstetrics, infectious disease, and pediatrics are typically the first departments cut, and that hospital closures "rapidly, dramatically" increase stroke/heart-attack mortality risk▶ 1:36:59▶ 1:38:21.

• Aizuss disclosed that Medicare physician payment has declined 33% in inflation-adjusted terms with no inflation update in his roughly 40 years of practice▶ 1:45:07▶ 2:49:17.

• Mitchell testified only about 69% of hospitals are fully compliant with federal price transparency rules five years after the requirement took effect▶ 3:00:20.

• Carter (GA) confronted Pollack over the 340B program's 20%-per-year growth and its use, citing 5,000 340B contract pharmacies in the Orlando area alone▶ 1:52:02.

• DiGiorgio and Aizuss both testified that ambulatory surgery centers and physician-owned hospitals cannot capture hospital-level facility fees, citing an example of a spine surgeon needing three lawyers to get five differing Stark Law opinions on simply purchasing an MRI machine▶ 2:16:10.

Metadata

CommitteeHouse Energy and Commerce Subcommittee on Health
Chamber / CongressHouse · 119th Congress
DateMarch 18, 2026
TypeHearing
Witnesses
Dr. David H. Aizuss, MD — Chair, Board of Trustees, American Medical Association
Ms. Barbara Merrill — CEO, American Network of Community Options and Resources
Dr. Anthony DiGiorgio, DO, MHA — Neurosurgeon, University of California San Francisco Health
Mr. R. Shawn Martin — Executive Vice President and CEO, American Academy of Family Physicians
Mr. Richard Pollack — President and CEO, American Hospital Association
Ms. Elizabeth Mitchell — President and CEO, Purchaser Business Group on Health
Videoyoutube
Transcript407 caption blocks · 29,338 words · 3:13:39 runtime
EventCongress.gov 119075