Top Democrats talking hospital price controls

Friday, Jan. 25, 2002 | 9:11 a.m.

Three of Nevada's top-ranking Democrats, frustrated over stalled contract talks between union leaders and area hospitals, have threatened legislation limiting how much hospitals can charge patients.

The union-based Health Services Purchasing Coalition, which represents 320,000 workers in Southern Nevada, helped organize Thursday's announcement by Assembly Speaker Richard Perkins of Henderson and Senate Minority Leader Dina Titus and Assembly Majority Leader Barbara Buckley, both of Las Vegas.

Individual unions negotiate health contracts under the umbrella of the coalition. Existing contracts for health services with area hospitals, negotiated by the coalition, expire Feb. 1.

The lawmakers said they plan to propose legislation that would institute consumer protections from "runaway hospital costs."

"We don't know what's going to happen, and we're scared," said Clark County firefighter Tony Balen. "We're just asking for what's fair."

Neither the coalition nor hospital administrators would discuss specifics of the ongoing negotiations or exactly how far apart the two sides are. Several union members have said some hospitals are seeking as much as a 20 percent increase to health care premiums.

Alan Stipe, president of Sunrise Hospital and Medical Center, wouldn't reveal his company's latest proposal made to the coalition, except that it was "significantly less" than 20 percent.

"We're in the business of delivering health care to everyone in the community," Stipe said. "We're facing rising utility costs, supply costs, skyrocketing malpractice insurance and regulatory costs. It would be great if the state Legislature could put a cap on those costs."

Titus would prefer the problem being resolved without government intervention, but said it may not be possible.

One issue involves administrators' desire to switch from a three-year contract to a one-year deal, Titus said. Without legislation, the current contract battle could become an annual event, Titus said.

"This issue is not partisan and it is not regional," Perkins said. "It will potentially have an effect on every man, woman and child living in Southern Nevada."

The legislation could create an independent commission that would evaluate and adjust hospital prices to prevent price gouging, Buckley said.

The legislation would also seek to block hospitals from reducing workforces or cutting employee wages to recoup lost profits, Buckley said.

Buckley, Perkins and Titus said they welcomed support from Republicans and called on Sen. Ray Rawson, R-Las Vegas, chairman of the Legislative subcommittee on health care, to participate.

"I think everybody's concerned about the issues raised by the unions," Rawson said Thursday. "The trouble is, there's been a stiff component of inflation in health care costs and I would suspect hospitals are being pressed right now to provide the services."