Starting in January, hospitals across the country were required to post their chargemaster prices online for patients to see. Unfortunately, thus far the change is causing more confusion than clarity. What's ultimately billed to the patient is determined the insurance company's negotiated rates with the facility, and that varies greatly from one individual to another. There is one thing that stays constant, however, and that is the hospital's actual expenses. Regardless of what the patient actually pays, every hospital stay includes supplies and staffing, as well as administrative and operational costs.

According to the American Hospital Association, revenue and costs per admission grew at a rate of 5 percent per year from 2000 to 2009. According to data from AHA, the average daily expense of an inpatient stay increased from $1,102 in 1999 (the first year information is available) to $2,338 in 2016. Expenses have increased the most at non-profit hospital facilities, jumping from $1,139 in 1999 to $2,488 in 2016. During that same period, for-profit inpatient expenses increased from $999 to $1,889.

Hospitals are utilizing a variety of approaches to bring expenses down, including more-efficient staffing, automation, improved administrative systems and budgeting tools. Still, some health systems are better than others when it comes to reining in expenses, and regional factors like cost of labor affect the bottom line.

Continue Reading for Free

Register and gain access to:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Emily Payne

Emily Payne is director, content analytics for ALM's Business & Finance Markets and former managing editor for BenefitsPRO. A Wisconsin native, she has spent the past decade writing and editing for various athletic and fitness publications. She holds an English degree and Business certificate from the University of Wisconsin.