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.
✅ 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