Hospitals Remain at the Epicenter of Healthcare Spending
A recent NPR report, Health Care Costs Are Projected to Outpace Economic Growth, shared that healthcare costs are projected to increase next year, but more slowly than in the past. Healthcare spending data from Truven Health shows that hospitals remain at the epicenter of healthcare spending.
Our reports show that hospital spending through Q2 2013 is nearly 4.5% higher than last year. Among all healthcare spending, the low spend is in pharmacy and drugs (1.6 percent), with a moderate spending increase in physician spending (1.6 percent). Since 2006, hospital spending has been the escalator of higher healthcare spending, driven partly by sicker inpatients and the growth of hospital outpatient business, so this is not unusual.
The escalation of hospital outpatient business is reflective of an expanded care continuum by most hospitals, as well as more responsive care delivery to forestalling readmissions and eliminating unnecessary admissions.
VP, Advisory Services