The Palo Alto Accountable and Affordable Care Initiative, challenged by certain hospitals and the California Hospital Association in Stanford Health Care v. City of Palo Alto, would impose an “acceptable payment amount” on the compensation hospitals and other medical providers can receive from insurers and certain other payers for the care provided to patients. “[T]he fact that no municipality has ever imposed price controls on hospitals should, at the very least, raise red flags ... about whether Palo Alto has the legal authority to do so,” states the AHA brief, filed in California superior court in Santa Clara County. “In addition, history reveals that Congress expressly invited … earlier State rate-setting experiments. Such an invitation is not only lacking today, but the Affordable Care Act provides a powerful signal that Congress sought to bring down the costs of hospital services using measures other than rate caps.”

Related News Articles

Headline
The departments of Labor, Health and Human Services, and the Treasury yesterday finalized a rule that will allow employers to use health reimbursement…
Insights and Analysis
AHA board member Becky Hultberg hopes to help the AHA create solutions for rural hospitals, among other initiatives.
Headline
The House Energy and Commerce Committee today held a hearing on its discussion draft of bipartisan legislation to address surprise medical bills.
Insights and Analysis
AHA board member Delvecchio Finley leads Alameda (Calif.) Health System in bringing more services to the community it serves, meeting patients where they are…
Headline
The U.S. Preventive Services Task Force today recommended a pill that helps prevent the spread of HIV to high-risk patients.
Perspective
Even with all the wrenches that have been thrown at it, the ACA has improved access to care, especially among those who needed it most.