Of 50 U.S. hospitals identified as having the highest price markups for uninsured patients, half are owned by the health system that plans to merge with Metro Health.

Community Health Systems Inc., a for-profit system based in Franklin, Tenn., operates 25 of the hospitals on the list, according to an article in The Washington Post.

The report published in Health Affairs examines 50 hospitals that charge uninsured consumers about 10 times the cost of care.

Using Medicare cost reports, the researchers looked at charge-to-cost ratios in 2012. The average markup nationwide was 3.4. That means if a hospital incurs $100 in costs, the patient would be charged $340, according to an article in Healthline.

But the top 50 hospitals charged prices about 10 times higher than cost – charging $1,000 for a service that cost $100.

"They are price-gouging because they can," Gerald Anderson told The Washington Post. He is a professor in the Bloomberg School's Department of Health Policy and Management and co-author of the report with Ge Bai, a professor at Washington & Lee University.

Private insurers can negotiate lower rates, but uninsured patients are often asked to pay the full charges, the report states. Out-of-network patients, and casualty and workers' compensation insurers often are expected to pay a large portion of the full charge.

Of the 50 hospitals with the highest markups, 49 are owned by for-profit systems.

The researchers say a lack of regulation and market competition has led to price gouging, Healthline reports. And they said the price increases could cause higher premiums for insured patients.

CHS, one of the largest for-profit systems in the country with 205 hospitals, seeks to buy an 80 percent interest in Metro, a nonprofit community hospital. The proposal is being reviewed by Michigan Attorney General Bill Schuette.

According to the Washington Post article, officials at CHS said the charges rarely reflect what consumers pay.

The article says CHS released a statement saying the health system provided $3.3 billion in charity care, discounts to uninsured patients and other uncompensated care last year. It also said several of its hospitals were not owned by CHS at the time the data was reported.

Metro Health officials were not available for comment early this morning.

In 2012, Metro Health received an award from the Michigan Health & Hospital Association for its Metro Care program, which provides financial help to patients.

Under the program, uninsured patients receive a 40 percent discount. It also offers 25-month, interest-free payment plans.

The Washington Post provides a list of the 50 hospitals cited in the report.

Originally posted: http://www.mlive.com/business/west-michigan/index.ssf/2015/06/metro_healths_proposed_partner.html