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.

Related Articles


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 March 28, 2015 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 March 28, 2015).

Share This


More From ScienceDaily



More Health & Medicine News

Saturday, March 28, 2015

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

S. Leone in New Anti-Ebola Lockdown

S. Leone in New Anti-Ebola Lockdown

AFP (Mar. 28, 2015) — Sierra Leone imposed a three-day nationwide lockdown Friday for the second time in six months in a bid to prevent a resurgence of the deadly Ebola virus. Duration: 01:17 Video provided by AFP
Powered by NewsLook.com
These Popular Antibiotics Can Cause Permanent Nerve Damage

These Popular Antibiotics Can Cause Permanent Nerve Damage

Newsy (Mar. 27, 2015) — A popular class of antibiotic can leave patients in severe pain and even result in permanent nerve damage. Video provided by Newsy
Powered by NewsLook.com
WH Plan to Fight Antibiotic-Resistant Germs

WH Plan to Fight Antibiotic-Resistant Germs

AP (Mar. 27, 2015) — The White House on Friday announced a five-year plan to fight the threat posed by antibiotic-resistant bacteria amid fears that once-treatable germs could become deadly. (March 27) Video provided by AP
Powered by NewsLook.com
House Ready to Pass Medicare Doc Bill

House Ready to Pass Medicare Doc Bill

AP (Mar. 26, 2015) — In rare bipartisan harmony, congressional leaders pushed a $214 billion bill permanently blocking physician Medicare cuts toward House passage Thursday, moving lawmakers closer to resolving a problem that has plagued them for years. (March 26) Video provided by AP
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:

Strange & Offbeat Stories

 

Health & Medicine

Mind & Brain

Living & Well

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