Hospital Costs in 2010

Although per capita medical spending growth has lessened in recent years, it remains a substantial concern.  The growth of hospital inpatient and outpatient spending is a particular concern, driven by consolidation resulting in increased market power and rises in unit prices.  An Agency for HealthCare Research and Quality Statistical Brief examines details on costs for hospital inpatient stays in 2010.   (AHRQ Brief)   Overall inpatient hospital spending represented 29% of total health care spending in that year, at $376 billion, with the average cost per stay at $9700.  Older and senior adults accounted for about half of hospital stays and two-thirds of spending.  Medicare paid for about 37% of stays and 45% of all hospital inpatient costs.  Medicaid had 21% of the stays and 16% of the costs.  The remainder was attributable to private insurance.  Seventy percent of costs were linked to seven major diagnostic categories.  Circulatory issues represented almost 20% of costs, musculoskeletal conditions 14%, respiratory conditions 11%, digestive conditions 9% and nervous system problems 8%.  Septicemia has had the fastest growth rate among conditions and osteoarthritis, device complications, back problems and respiratory failure also had high growth rates for inpatient spending.  The number of per capita stays was relatively constant, but intensity of services provided was a major factor in cost per stay growth.