News/Blog

2018 July

Think drug costs are bad? Try hospital and professional service prices!

Posted by | Hospital Finance, Uncategorized | No Comments

Some pharmaceutical companies said they’ll delay some of their price increases under pressure from the government. But hospitals and care professionals have made no such concessions, even though they make up a much larger share of total health care spending. Hospitals and care professionals are not going to hold off on price increases!

Drug makers pledges to hold price increases are political bandages with little real effect on patients’ pocketbooks, but hospitals and care professionals cost increases hit them harder! Hospitals prices have grown somewhat slowly over the past few years, but slow growth of high prices leaves high prices.

Some hospitals and health systems argue that they are limiting increases to below 3% annually, but the net effect is well over 5%. And the cost isn’t going up because we’re using more health care, but because of the prices we pay for those services.