17
HOSPI TALS
SANOFI / MANAGED CARE DIGEST SERIES
®
/ WHERE INFORMATION BECOMES INTELLIGENCE.
HOSPITALS/SYSTEMS DIGEST 2013
Key Takeaway
Increasing administrative efficiencies and expanding the use of health information technology (HIT) are
among the many ways hospitals are attempting to control operational costs. The Office of the National
Coordinator for Health Information Technology tracks the use of electronic health records (EHR; an
important component in an overall HIT strategy) at hospitals and found that, as of the end of 2011, only
35% of hospitals nationwide had even a basic EHR system in place.
1
As the adoption of this technology
becomes more widespread, hospitals may be better able to temper operational cost growth.
• In 2011, hospitals overall reported increased
total costs per admission, to $21,427 from
$20,844 in 2010. This 2.8% year-to-year growth
was the lowest among the years profiled.
• Between 2006 and 2010, annual growth in total
costs per admission exceeded 5% each year.
The steepest such climb during the period
shown occurred in 2008, at a notable 13.8%.
Costs per Occupied Bed Increase at MHS and Non-MHS Facilities
• At hospitals owned by MHSs, total costs
per occupied bed rose by 3.4% in 2011, to
$1.74 million from $1.68 million in 2010. At 3.2%,
non-MHS facilities recorded a comparable
growth of such costs over this period.
• Non-MHS hospitals reported slightly reduced
salary ($54,644 vs. $55,191) and total ($131,386
vs. $134,858) costs per full-time equivalent (FTE)
in 2011. Meanwhile, such costs grew modestly
at MHS hospitals between 2010 and 2011.
F INANCIALS
OPERATING EXPENSES PER HOSPITAL, BY MHS OWNERSHIP
MHS Hospitals
Non-MHS Hospitals
ALL HOSPITALS
Cost MEASURE
2010
2011
2010
2011
2010
2011
Total Costs/Occupied Bed $1,679,008 $1,736,857 $1,951,375 $2,012,882
$1,800,640 $1,845,019
Total Costs/Admission
19,917
20,513
21,981
22,820
20,844
21,427
Total Costs/Patient-Day
4,669
4,847
5,517
5,709
5,051
5,188
Labor Costs/Patient-Day
1,878
1,949
2,034
2,050
1,937
1,981
Salary Costs/FTE
62,137
62,515
55,191
54,644
59,405
59,850
Total Costs/FTE
167,763
168,591
134,858
131,386
152,094
153,490
TOTAL COSTS PER ADMISSION, ALL HOSPITALS, 2006–2011
Data source: IMS Health © 2013
Hospital Costs per Admission Grow at Slowest Rate in Six Years
LONG-TERM TREND
1
Office of the National Coordinator for Health Information Technology. (2012). Hospital Adoption of EHRs. Retrieved from
$10,000
$13,000
$16,000
$19,000
$22,000
Total Costs per Admission
2006
2007
2008
2009
2010
2011
B
Total Costs per Admission ( ) Percentage Increase
$15,692
$16,507
$18,777
$19,733
$20,844
$21,427
(+13.8%)
(+5.2%)
(+5.1%)
(+5.6%)
(+2.8%)
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