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Health Care Costs: the Role of
PricePaul B. Ginsburg, Ph.D.
November 9, 2009
Presentation to National Coalition on
Health Care
Anatomy of Health Spending

Expenditures = Price X Quantity
International comparisons
Decomposition of National Health Expenditures Trends

‡Price versus use/intensity
Provider Payment Reform (1)
Revamping current payment systems
‡Getting relative payments in line with relative costs
Some success in Medicare hospital payment rates
Large changes needed in Medicare physician payments
‡Relative values used by most other payers
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