Calif. initiatives would cap cost of services, CEO pay

United Healthcare Workers West, a California healthcare workers’ union, is collecting signatures to get two measures onto the ballot that it says would lower healthcare costs. One initiative would cap what hospitals can charge to 25% above the actual cost of services. On average, hospitals charge 320% above the cost of care, the union says. The second measure would cap CEO salaries at nonprofit hospitals to $450,000 a year. However, the California Hospital Association (CHA) counters that capping charges would cut $12 billion annually from hospital revenues statewide, forcing cutbacks in staff and services. Seventeen Democratic California lawmakers have endorsed the ballot measures.

Source: Kaiser Health News