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Algorithmic hospital pricing takes blame for high charges via NYtimes

While insurance companies negotiate fees with hospitals that are lower than the billed charges, uninsured patients are often stuck with the full price and can be pursued by bill collectors.

“The median charge is never what we charge our patients,” she said. “It’s more like a management tool. It’s just a number we have in our system.” 

For patients without insurance, she said: “The charge would depend on your financial situation. Every case is different.”

The most expensive place for the same knee surgery in 2011 was NYU Langone Medical Center in Manhattan. There, 20 cases coded the same way cost the hospital a median of $33,280 and were charged at $110,915.

Lisa Greiner, a spokeswoman for NYU Langone, responded in an email: “Hospital pricing is complicated and based on a set of comprehensive algorithms. Charges take into account volume, teaching hospital status, geographic region, quality of care and the fact that many medical procedures are reimbursed by government programs below costs.”