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OCA study finds Monterey hospitals’ commercial prices far above peers; lack of competition cited
Summary
A year‑long Office of Health Care Affordability analysis using CalPERS and Covered California claims finds Monterey County has the highest wage‑adjusted inpatient prices in California and among the highest outpatient prices, concluding limited competition and hospital‑physician consolidation sustain those prices.
The Office of Health Care Affordability on Monday presented a new market study concluding that Monterey County hospitals charge commercial insurers substantially higher prices than comparable hospitals across California.
The study, prepared with outside analysts using CalPERS and Covered California claims, found Monterey ranks first in wage‑adjusted inpatient prices and fourth in outpatient prices after accounting for regional wage differences, patient age and case mix. Presenters said those high prices persist despite operating costs, nurse wages and commonly used quality measures that are similar to Bay Area peers.
“New hospital price analysis using data from CalPERS and Covered California show that Monterey County has the highest inpatient prices in California,” said Dan Arnold, one of the study’s presenters. The analysis examined common inpatient admissions and outpatient procedures and…
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