Page 31 - 2013 Hospitals/Systems Digest US.NMH.13.02.007

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HOSPI TALS IN MULT IHOSPI TAL SYSTEMS
SANOFI / MANAGED CARE DIGEST SERIES® / WHERE INFORMATION BECOMES INTELLIGENCE.™ HOSPITALS/SYSTEMS DIGEST 2013
• Between 2009 and 2011, total costs per
occupied bed at non-MHS-owned hospitals rose
10.3%, to $2.0 million from $1.8 million. At hospitals
overall, such costs climbed 8.6% over the same
three years, to $1.8 million from $1.7 million.
• In 2011, as in previous years, total costs per
occupied bed at non-MHS-owned facilities were
higher than those at their MHS counterparts,
regardless of HMO ownership. Non-MHS costs
likewise exceeded costs at hospitals overall.
Total Costs per Occupied Bed Increase at Non-MHS Hospitals
Data source: IMS Health © 2013
Hospital Cost Ratios Rise Overall, Even as Salary Costs per FTE Fall in Some Sectors
• Across all non-MHS-owned and MHS-owned
facilities, regardless of HMO ownership,
total costs per admission and total costs per
patient‑day climbed between 2010 and 2011.
• Although salary costs per full-time equivalent
(FTE) rose at hospitals overall in 2011, this ratio
dropped at both non-MHS-owned hospitals
and MHS‑owned hospitals with an HMO.
F INANCIALS
Key Takeaway
As the health care industry continues to adapt to current economic pressures, with an emphasis
on risk management and financial performance, the number of facilities absorbed into MHSs
continues to climb (see page 23). With the understanding that economies of scale can increase
operational efficiency, the future could see an increasing disparity between the operating costs of
non-MHS-owned and MHS-owned facilities.
$1,000
$1,300
$1,600
$1,900
$2,200
Costs (000)
MHS Owned
(With HMO)
MHS Owned
(Without HMO)
Non-MHS Owned All
Hospitals
$1,772.1
$1,854.1 $1,904.6
$1,561.4
$1,651.4
$1,711.5
$1,825.5
$1,951.4 $2,012.9
$1,699.2
$1,800.6 $1,845.0
2009 2010 2011
TOTAL COSTS PER OCCUPIED BED
Hospital Cost Ratios, by MHS Ownership
MHS Owned
(With HMO)
MHS Owned
(Without HMO) Non-MHS Owned ALL HOSPITALS
Cost Measure 2010 2011 2010 2011 2010 2011 2010 2011
Total Costs/Admission $21,773 $22,053 $19,619 $20,275 $21,981 $22,820 $20,844 $21,427
Total Costs/Patient-Day 5,193 5,323 4,586 4,775 5,517 5,709 5,051 5,188
Labor Costs/Patient-Day 2,195 2,206 1,826 1,910 2,034 2,050 1,937 1,981
Salary Costs/FTE 65,815 65,532 61,570 62,076 55,191 54,644 59,405 59,850
Total Costs/FTE 170,164 170,336 167,382 168,324 134,858 133,386 152,094 153,490