MedCity morning read, Friday, April 17

Hospitals and drug companies raised prices to bolster earnings in the first quarter even as government and private insurers struggled to reign in runaway health care costs, according to an analysis done by the Wall Street Journal (subscription required).

Drug makers increased prices on drugs like Viagra and leukemia pill Sprycel by more than 20 percent in the first quarter from a year ago, according to information from Credit Suisse, the Journal reported.

Meanwhile, for-profit hospital corporation HCA Inc. in Nashville, Tenn., previewed its expected first-quarter results Tuesday, saying its adjusted earnings likely rose between 21 percent and 25 percent in the quarter ended March 31 from a year ago. Those results came with fewer hospitals and fewer admissions, the Journal pointed out.

In another measure of rising prices, Express Scripts Inc., one of the nation’s largest pharmacy-benefits managers, said it saw prices rise more than 10 percent to 15 percent between the 2008 first quarter and the just-ended quarter, the Journal said.

Higher hospital and drug prices trickle down to consumers in the forms of higher out-of-pocket costs, insurance premiums and co-payments. Rising health care costs also put financial pressure on employers that pay some premiums for employees.

The price increases underscore the deep challenges faced by the Obama administration and Congress as they try to reform the nation’s health care system and provide coverage for at least 45 million Americans who lack health insurance, the Journal said.

More news worth a read:

• Massachusetts General Hospital halts pediatric heart surgery program (Boston Globe)
• Kaiser Permanente to settle kidney transplant claims for $1 million (Los Angeles Times)
• Florida Hospital Association: Medicaid cuts will cost hospital jobs (Jacksonville Business Journal)
• Stimulus’ extension of COBRA benefits starts (Philadelphia Inquirer)
• Marcus promises Grady Memorial Hospital $20 million (Atlanta Journal-Constitution)
• Cardinal Health launches infant care verification to improve NICU safety (Cardinal Health)
• Trying to fill in the blanks in FDA’s rules on Web ads (Wall Street Journal Health blog)
• Inexpensive drug appears to relieve fibromyalgia pain in Stanford pilot study (EurekaAlert!)
• Midwest Research Institute launches clinical molecular diagnostics laboratory (PR Newswire)