Featured Research

from universities, journals, and other organizations

Technology, not uninsured patients, driving hospital costs

Date:
October 2, 2013
Source:
Rice University
Summary:
Technology, not uninsured patients, likely explains the steep rise in the cost of hospital care in Texas in recent years.

The results of this study suggest more attention should be paid to understanding the cost drivers of hospital care. "If technology growth is behind the cost increases, then greater efforts should be devoted to determining which technologies are cost-effective," Ho said. "Greater thought could also be devoted to designing reimbursement mechanisms that discourage inefficient use of new technologies."
Credit: mario beauregard / Fotolia

Technology, not uninsured patients, likely explains the steep rise in the cost of hospital care in Texas in recent years, according to Vivian Ho, the chair in health economics at Rice University's Baker Institute for Public Policy, a professor of economics at Rice and a professor of medicine at Baylor College of Medicine. Her findings were reported in an article appearing in the Oct. 1 online edition of the journal Healthcare Management, Practice and Innovation.

Ho emphasized her findings contradict a public perception that the rising numbers of uninsured persons explains the increase in prices that hospitals charge for treating privately insured patients. "This misconception has distracted policymakers and workers in the health care sector from identifying effective strategies for cost control," she said. But while Ho said her study can explain more than half of the observed price increase with hospital, patient and market characteristics, a sizable portion remains unexplained.

In the study, Ho used data on revenues by payer type to identify the factors for rising hospital costs in Texas between 2000 and 2007. The study comes against the backdrop of a substantial rise in health care expenditures in the United States that has been accompanied by rapid increases in fees that hospitals receive for treating privately-insured patients.

"We discovered that approximately two-thirds of the increase in prices can be explained by increases in the costs of care, which may reflect the growth and use of more advanced technology," Ho said. "Part of this cost increase could also be attributable to sicker patient populations, as patients with less severe conditions are increasingly treated in freestanding facilities. We found no firm evidence that hospitals are raising prices in response to lower reimbursement from Medicare, Medicaid or uninsured and self-pay patients."

She said the results of this study suggest more attention should be paid to understanding the cost drivers of hospital care. "If technology growth is behind the cost increases, then greater efforts should be devoted to determining which technologies are cost-effective," Ho said. "Greater thought could also be devoted to designing reimbursement mechanisms that discourage inefficient use of new technologies."


Story Source:

The above story is based on materials provided by Rice University. Note: Materials may be edited for content and length.


Journal Reference:

  1. Ho, Vivian,dugan, Jerome and Ku-goto, Meei-hsiang. WH Y ARE HOSPITAL PRICES RISING? Health Management, Policy and Innovation, October 2013

Cite This Page:

Rice University. "Technology, not uninsured patients, driving hospital costs." ScienceDaily. ScienceDaily, 2 October 2013. <www.sciencedaily.com/releases/2013/10/131002125518.htm>.
Rice University. (2013, October 2). Technology, not uninsured patients, driving hospital costs. ScienceDaily. Retrieved July 30, 2014 from www.sciencedaily.com/releases/2013/10/131002125518.htm
Rice University. "Technology, not uninsured patients, driving hospital costs." ScienceDaily. www.sciencedaily.com/releases/2013/10/131002125518.htm (accessed July 30, 2014).

Share This




More Health & Medicine News

Wednesday, July 30, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Health Insurers' Profits Slide

Health Insurers' Profits Slide

Reuters - Business Video Online (July 30, 2014) Obamacare-related costs were said to be behind the profit plunge at Wellpoint and Humana, but Wellpoint sees the new exchanges boosting its earnings for the full year. Fred Katayama reports. Video provided by Reuters
Powered by NewsLook.com
Concern Grows Over Worsening Ebola Crisis

Concern Grows Over Worsening Ebola Crisis

AFP (July 30, 2014) Pan-African airline ASKY has suspended all flights to and from the capitals of Liberia and Sierra Leone amid the worsening Ebola health crisis, which has so far caused 672 deaths in Guinea, Liberia and Sierra Leone. Duration: 00:43 Video provided by AFP
Powered by NewsLook.com
At Least 20 Chikungunya Cases in New Jersey

At Least 20 Chikungunya Cases in New Jersey

AP (July 30, 2014) At least 20 New Jersey residents have tested positive for chikungunya, a mosquito-borne virus that has spread through the Caribbean. (July 30) Video provided by AP
Powered by NewsLook.com
Generics Eat Into Pfizer's Sales

Generics Eat Into Pfizer's Sales

Reuters - Business Video Online (July 29, 2014) Pfizer, the world's largest drug maker, cut full-year revenue forecasts because generics could cut into sales of its anti-arthritis drug, Celebrex. Fred Katayama reports. Video provided by Reuters
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:
from the past week

In Other News

... from NewsDaily.com

Science News

Health News

    Environment News

    Technology News



      Save/Print:
      Share:

      Free Subscriptions


      Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

      Get Social & Mobile


      Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

      Have Feedback?


      Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
      Mobile: iPhone Android Web
      Follow: Facebook Twitter Google+
      Subscribe: RSS Feeds Email Newsletters
      Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins