Page 33 - 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
Key Takeaway
Participation in MHSs has grown in recent years, as facility administrators continually look to trim
costs. Indeed, MHS membership appears to confer the benefit of lower pharmacy expense ratios
compared with non-MHS benchmarks. This may be the result of large-scale drug purchasing on the
part of MHSs. Hospitals in MHSs with an HMO component may see additional savings, as such plans
leverage pharmacy controls to further manage drug utilization and spending.
Data source: IMS Health © 2013
PHARMACY
For-Profit MHS Hospitals Report Smallest Increase in Pharmaceutical Expense Ratio
• Among MHS facilities, for-profit hospitals had the
smallest growth in pharmaceutical expenses
per discharge (0.3%) and per staffed bed (0.9%)
in 2011, while government facilities reported the
largest such rises (2.0% and 3.6%, respectively).
• Government hospitals in MHSs tallied the
highest pharmaceutical costs per discharge
($1,565) and per staffed bed ($63,737) in
2011, each more than 44% higher than the
corresponding ratios at for-profit facilities.
PER STAFFED BED PER DISCHARGE
$800 $1,000 $1,200 $1,400 $1,600
Pharmaceutical Expenses per Discharge
$1,049
$1,052
$1,254
$1,273
$1,535
$1,565
2010
2011
Government
Not-for-Profit
For-Profit
$36,000 $43,500 $51,000 $58,500 $66,000
Pharmaceutical Expenses per Staffed Bed
Government
Not-for-Profit
For-Profit $43,627
$44,012
$57,447
$58,362
$61,549
$63,737
2010
2011
MULTIHOSPITAL SYSTEM PHARMACEUTICAL EXPENSES, BY OWNERSHIP TYPE
• The disparity between pharmaceutical
expenses per discharge at hospitals in
MHSs and non‑MHS facilities continued to
expand in 2011, to 13.6% from 12.7% in 2010.
• Continuing its long-term climb, per-discharge
pharmaceutical costs rose in 2011, but such
growth at MHS hospitals since 2004 (28.3%) was
more modest than at non-MHS facilities (40.0%).
PHARMACEUTICAL EXPENSES PER DISCHARGE, BY MHS OWNERSHIP, 2004–2011
$900
$1,035
$1,170
$1,305
$1,440
Pharmaceutical Expenses
per Discharge
$963
$1,011 $1,007
$1,047
$1,135
$1,166
$1,210 $1,236
$1,003
$1,097
$1,127
$1,192
$1,226
$1,292
$1,364
$1,404
2004 2005 2006 2007 2008 2009 2010 2011
MHS Hospitals Non-MHS Hospitals
Gap Widens Between MHS, Non-MHS Rx Cost Ratios
LONG-TERM TREND