- N.C. hospitals make big money while suing vulnerable patients for rising costs of care
- http://www.newsobserver.com/prognosisprofits
- http://www.charlotteobserver.com/hospitals
- http://www.newsobserver.com/hospitalmap/
Provide names of other journalists involved.
David Raynor, database editor
List date(s) this work was published or aired.
April 22-26, September 23, December 16
Provide a brief synopsis of the story or stories, including any significant findings.
The two newspapers investigated the practices of North Carolina’s non-profit hospitals. The hospitals generated huge profit margins during the Great Recession, amassed billions in reserves and paid top executives million dollar salaries. The hospitals made substantial profits by inflating prices for drugs and procedures. Hospitals pursued patients aggressively through collection agencies and some sued patients to put liens on their homes. Many failed to provide sufficient charity care to offset their non-profit status. The hospital protected their positions with one of the most effective lobbbies in the state. Later stories showed how hospitals made huge profits off cancer drugs, pocketing 5, 10 or even 50 times average sales price. Another showed how hospitals run up the price of routine services after acquiring doctor practices.
Explain types of documents, data or Internet resources used. Were FOI or public records act requests required? How did this affect the work?
Certificates of Need. Medicare data. Hospital cost reports. Lawsuits. Consumer complaints. Private insurance data. Medicare allowable files. Bond documents, such as official statements and audits. Federal and state regulations. Legislative reports, bill and recordings of committee sessions. Campaign finance documents. Emails of public hospital officials.
Explain types of human sources used.
We interviewed hospital executives, insurance executives, consultants, doctors, nurses, professors, patients, lobbyists, public servants, lawyers, consumer advocates and others.
Results:
Sen. Charles Grassley has started an investigation of the hospitals’ use of the federal 340B drug program.
NC Attorney General Roy Cooper said he’ll use antitrust laws to determine if hospitals inflate prices or restrain trade.
The NC NAACP called on the state’s largest hospital system to stop suing patients; the system has since slowed the number off suits filed.
Follow-up (if any). Have you run a correction or clarification on the report or has anyone come forward to challenge its accuracy? If so, please explain.
No. The NC Hospital Association published op-eds conceding that the series was accurate and did not dispute a word.
Advice to other journalists planning a similar story or project.
Stay organized!