In all the focus on health care spending there has been relatively little discussion about the role of provider input costs. To some extent, the prices charged by physicians, hospitals and other health care providers are influenced by what they pay for staff, facilities, equipment, supplies, liability insurance and other inputs they need to render services. Reducing those input costs, or at least limiting their growth, might help control providers’ prices to patients and payers. One obscure cost category, but quite sizable, is all the equipment and supplies needed to run the modern hospital. A New York Times article describes a Senatorial investigation into the purchasing of these items. (NY Times Article) The story focuses on group purchasing organizations and skepticism about whether they are delivering the best prices for hospitals, and if not, whether they are actually driving up health care costs. Whatever the outcome of the investigation, more examination of input costs and how they might be reduced is a welcome approach to overall health spending control.
✅ Subscribe via Email
About this Blog
The Healthy Skeptic is a website about the health care system, and is written by Kevin Roche, who has many years of experience working in the health industry. Mr. Roche is available to assist health care companies through consulting arrangements through Roche Consulting, LLC and may be reached at [email protected].
Healthy Skeptic Podcast
This is an outstanding report on total global drug spending and trends, with projections out to 2025. It helps you understand this important area of health care, which does much...
June 1, 2021
MedPAC 2019 Report to Congress
June 18, 2019
Mental health company Headway makes, well, headway, by raising an impressive $125 million round of new capital. The company connects patients with mental health providers and facilitates providers working with...
October 11, 2023
Two health care firms owned by private equity firms are merging in a transaction supposedly valued at $3 billion. HealthComp administers self-funded plans for employers and other groups and Virgin...
September 27, 2023
NextGen, an electronic medical records firm, is being put out of its public company misery, as a PE firm will pay $1.6 billion for the one-time high-flier.
September 7, 2023
Access ACO Care Management Chronic Disease Comparative Effectiveness Consumer Directed Health Consumers Devices Disease Management Drugs EHRs Elder Care End-of-Life Care FDA Financings Genomics Government Health Care Costs Health Care Quality Health Care Reform Health Insurance Health Insurance Exchange HIT HomeCare Hospital Hospital Readmissions Legislation M&A Malpractice Meaningful Use Medicaid Medical Care Medicare Medicare Advantage Mobile Pay For Performance Pharmaceutical Physicians Providers Regulation Repealing Reform Telehealth Telemedicine Wellness and Prevention Workplace