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Inpatients Outpatients
Today’s hospital patient is really sick …
With the expansion of outpatient and less invasive
procedures, hospital lengths of stay have decreased,
but the patients are sicker.
Nearly half of Medicare patients have an average of
three or more chronic conditions.
The current 65-and-older population is expected to
double by 2050.
Hospital care is not cheap
Skilled staff available 24/7, millions of dollars
70
in equipment
Overhead for 60
surgical suites, 50
30 59.5
20
10 20.4
14.2
5.9
0
Wages and Benefits Other Services Prescription Drugs Other Supplies
Cost of hospital care decreasing …
Hospital care as a percent of total spending has
actually declined from 43 percent in 1980 to 33
percent in 2009.
Alabama’s hospitals are extremely efficient when
compared to other states.
16th lowest cost per discharge in the country
9th lowest net patient revenue per discharge
The cost to you, the consumer
Per capita health spending (all services) for 2009
was $8086
Average annual premium for employer-sponsored
coverage - $15,745 in 2012.
Key drivers of increased cost:
Increase in technology and new medications
Rise in chronic disease – 75 percent of increase
Administrative costs – average about 7 percent for
government and private insurance plans
The hospital journey to improve care and reduce costs …
Began coordinated statewide effort to improve care:
Monthly meetings of Quality Task Force
Twice-a-year forums for networking/education
Hospital Compare
Blue Cross Blue Shield
Alabama Department of Public Health