Hospital prices in Wisconsin are nearly 26% percent higher overall than in neighboring Illinois, according to the latest findings from the Center for Research on the Wisconsin Economy.
The center’s new report, “Hospital Prices in Wisconsin and Illinois: A Cross-State Comparison,” compares hospital prices between the two states by using commercial negotiated-rate data taken from hospital and payer price-transparency filings.
The analysis found that Wisconsin’s negotiated rates exceed Illinois rates on inpatient services. It covers about 70 hospitals in Illinois and 60 in Wisconsin and spans dozens of health systems.
The center, which is based in the Department of Economics at the University of Wisconsin–Madison, said the price relationship holds across factors such as the inclusion of hospital facility-type and teaching-status controls, and when reproduced in an independent hospital-reported data source.
“Taken together, these findings point to market structure, rather than service mix, hospital type, or insurer behavior, as the leading candidate explanation for Wisconsin’s elevated hospital prices,” the report said.
The center said follow-up phases of the study will investigate potential drivers of the cost disparity, including hospital consolidation and provider-sponsored health plans.
