A study by Brown University reveals that Oregon’s hospital price cap, implemented in 2019, has not adversely affected hospital finances or patient care quality. The cap limits payments to 200% of Medicare rates for in-network hospitals and 185% for out-of-network hospitals, targeting state employee health plans. Despite initial concerns from hospitals about potential financial strain, the study found no significant impact on revenues, staffing, or service delivery. The findings suggest that expanding such caps to the broader commercial market could be financially viable, potentially saving Oregon over $500 million in 2023.
