Federal health officials have issued warnings to more than 500 hospitals nationwide, ordering them to publicly disclose the actual prices they charge for medical services or risk penalties of up to $2 million per year. The move marks an escalation in enforcement of a Trump administration transparency rule that officials say was not consistently enforced under the Biden administration.
“For years, Americans have walked into a hospital with no idea what their care would cost, and walked out with medical bills that wiped out their savings. That ends today,” Kennedy said.
In a video statement, Kennedy also issued a warning to hospitals that remain out of compliance.
“All hospitals should consider this a formal notice to every hospital in America that is still hiding prices from patients. We know who you are,” Kennedy said.
“If your hospital is not in compliance, you are in violation of federal law,” he added.
Oz said administration officials notified hospitals on April 1 that the government would begin enforcing the price transparency rules. Since then, regulators have been reviewing thousands of hospitals for compliance.
More than 500 hospitals failed to fully comply with federal requirements mandating the disclosure of negotiated rates and out-of-pocket estimates for common procedures. Those hospitals received warning letters or were directed to submit corrective action plans.
Hospitals that fail to comply could face civil monetary penalties of up to $2 million annually, along with enforcement actions such as corrective action plans and additional oversight for repeat noncompliance.
The policy originated with a 2019 executive order signed during President Donald Trump's first administration, directing federal agencies to expand healthcare price transparency. The requirement took effect in 2021, but enforcement had not been strictly followed.
Oz said the requirement was not fully enforced during the Biden administration and that the Trump administration is now increasing oversight to ensure compliance.
According to CMS, the database “includes the name of each hospital or hospital location, the hospital or hospital location address, the outcome or action following a CMS compliance review and the date of the outcome or action taken.” The agency updates the database quarterly.
“Our message to hospitals is simple: post your real prices, come into compliance immediately, or prepare for serious consequences. Don’t wait for a penalty notice, then it may be too late,” Kennedy said.