A report by the American Hospital Association suggests that hospital costs are declining as part of the total cost of healthcare in the United States, down from 42.7 percent of costs in 1980 to 32.6 percent of costs in 2009.
Although hospitals still remain the largest spending category, the relative decline occurred despite sharp increases in total expenditures for healthcare, driven largely by increased costs attributed to new technology. In 1980, the U.S. spent $235.6 billion on healthcare services and supplies. This increased to $2.3 trillion in 2009.
Some of the decline in hospital cost relative to other areas may be attributed the growth in outpatient care; hospitals are now treating sicker patients who require more specialized care.
Of hospital costs, nearly 60 percent are attributed to wages and staffing costs. For certain workers, a shortage of qualified candidates with specialized skills has driven up wages, and therefore costs, according to the report.
Read the report, "The Cost of Caring: Drivers of Spending on Hospital Care" (pdf).
Read more coverage on the AHA:
- American Hospital Association Inducts John Bluford as Chairman
- AHA Urging CMS to Fix Rural Floor Budget-Neutrality Adjustment
- AHA: ICD-10 Implementation Makes Meaningful Use Stage 2 Deadline Unrealistic
Although hospitals still remain the largest spending category, the relative decline occurred despite sharp increases in total expenditures for healthcare, driven largely by increased costs attributed to new technology. In 1980, the U.S. spent $235.6 billion on healthcare services and supplies. This increased to $2.3 trillion in 2009.
Some of the decline in hospital cost relative to other areas may be attributed the growth in outpatient care; hospitals are now treating sicker patients who require more specialized care.
Of hospital costs, nearly 60 percent are attributed to wages and staffing costs. For certain workers, a shortage of qualified candidates with specialized skills has driven up wages, and therefore costs, according to the report.
Read the report, "The Cost of Caring: Drivers of Spending on Hospital Care" (pdf).
Read more coverage on the AHA:
- American Hospital Association Inducts John Bluford as Chairman
- AHA Urging CMS to Fix Rural Floor Budget-Neutrality Adjustment
- AHA: ICD-10 Implementation Makes Meaningful Use Stage 2 Deadline Unrealistic