Healthcare costs for employees are expected to increase by 8.5 percent in 2012, up from an 8 percent increase in 2011, according to PwC's report, Behind the Numbers: Medical Cost Trends for 2012.
Factors influencing the inflated costs for 2012 include hospital consolidation and cost shifting from Medicare and Medicaid increases. Post-recession stress is also taking its toll on employees, as many have postponed receiving care to avoid the cost.
The report included key findings for hospitals, recommending they increase transparency and coordination of care while managing vendor contracts, to remain chosen providers for employers and payors.
1. Transparency. With increased cost sharing, patients will want to know more about a hospital's pricing and billing practices. A move towards more patient-friendly billing, such as financial counseling, may lead to improved patient relations and collections.
2. Coordination of care. Hospitals and physicians should explore ways to improve the coordination of services, such as accountable care organizations. The speed in which hospitals can delivery more efficient care will become more important in competitive markets.
3. Vendor relationships. Hospitals have an opportunity to consolidate vendor contracts through close alignment with physicians. By standardizing devices used for a set of procedures, hospitals can negotiate lower prices and more closely manage device purchases.
Read the PwC report, Behind the Numbers: Medical Cost Trends for 2012 (pdf).
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Factors influencing the inflated costs for 2012 include hospital consolidation and cost shifting from Medicare and Medicaid increases. Post-recession stress is also taking its toll on employees, as many have postponed receiving care to avoid the cost.
The report included key findings for hospitals, recommending they increase transparency and coordination of care while managing vendor contracts, to remain chosen providers for employers and payors.
1. Transparency. With increased cost sharing, patients will want to know more about a hospital's pricing and billing practices. A move towards more patient-friendly billing, such as financial counseling, may lead to improved patient relations and collections.
2. Coordination of care. Hospitals and physicians should explore ways to improve the coordination of services, such as accountable care organizations. The speed in which hospitals can delivery more efficient care will become more important in competitive markets.
3. Vendor relationships. Hospitals have an opportunity to consolidate vendor contracts through close alignment with physicians. By standardizing devices used for a set of procedures, hospitals can negotiate lower prices and more closely manage device purchases.
Read the PwC report, Behind the Numbers: Medical Cost Trends for 2012 (pdf).
Related Articles on Hospitals and Employers:
The Top 10 Challenges Facing Healthcare Workers
Most Employers Don't Believe Government, Healthcare Providers Should Establish Quality Outcomes
5 Ways Hospitals Can Lower Their Employee Healthcare Costs