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AG: Higher priced Mass. hospitals driving up costs

March 16, 2010

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BOSTON—Higher priced hospitals are helping drive up health costs in Massachusetts, according to Attorney General Martha Coakley.

Coakley released a study Tuesday that found prices charged by hospitals for the same services vary widely within the same geographic area and cannot be explained by quality of care.

She said higher priced hospitals are gaining market share, forcing lower priced hospitals to close or consolidate.

She also said much of the increase in health care spending was the result of higher costs for services, not an increase in those services.

In 2008, the price for a normal delivery ranged from over $3,000 to nearly $9,000, while the highest price for a gastric-bypass was more than seven times the lowest.

The state is looking to slow health care spending.