Local Hospital Fined $1 Million Over Price Transparency

A federal agency has issued notices to Northside Hospital that they are being fined one million dollars. This includes a fine of $214,320 to Northside Hospital Cherokee. The federal agency says the healthcare system failed to make pricing information publicly available online. This is a violation of federal law.

Northside Hospital Atlanta and Northside Hospital Cherokee are the first hospitals to be fined by the Centers for Medicare and Medicaid Services for violations of a price transparency law. This new law went into effect at the beginning of last year. It requires hospitals to provide clear and accessible pricing information to the public.

The agency has said that Northside Hospital has failed to make a public list of all charges for all items and services provided by the hospital. According to the letter received by the hospital system, the agency asked Northside Hospital twice for an action plan to correct the violation and did not receive one. In the notice to Northside Hospital Cherokee dated June 7, the agency charges that the hospital has been in violation of the law since April 15, 2021.

The CMS stated that on a phone call with Northside Hospital Cherokee that took place in January, the representative for the hospital confirmed that the violations had not been corrected and that the hospital had removed all previously posted prices.

When the agency asked Northside Hospital Atlanta for a corrective action plan in November, a hospital representative said that potential patients would have to call the hospital for an estimate. The CMS says that price estimations do not comply with regulations.

The hospital system has 60 days from the date of the notices to pay the fines. They can submit a request for an appeal within 30 days

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