In the rush to hold insurers to account, don’t forget about hospitals

When asked to account for the skyrocketing cost of health coverage before two House committees last Thursday, the chief executives of five of America’s largest health insurance companies pointed fingers.

It was a plainly self-serving argument, of course. But there’s a kernel of truth in it. Hospitals represent a greater share of our nation’s health bill than any other group. Lawmakers concerned about healthcare affordability will need to take a long look at the hospital sector.

According to the latest federal data, hospitals accounted for 31% of U.S. healthcare spending in 2024. By comparison, the insurance industry’s other scapegoat, prescription drug spending, represented 8.8% of health spending.

Hospitals have also been getting costlier by the year, with overall hospital spending growing by 10.6% in 2023 and another 8.9% in 2024.

This growth