Administrative Costs in U.S. Hospitals

Woolhandler, Steffie; Himmelstein, David U.; Lewontin, James P.

doi:10.1097/00132586-199404000-00055

Cited by 9 publications

(11 citation statements)

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“…A recent study of hospital administrative savings from adopting a Canadian-style system in the United States arrived at a much larger estimate of potential administrative savings. 24 However, this study systematically overstated both the extent of administrative spending and the potential savings that might be achieved. First, the analysis included many costs that are not administrative in nature, such as capital-related costs (buildings, fixtures, and movable equipment), employee benefits, and the full costs of medical records.…”

mentioning

confidence: 99%

Eliminating Waste and Inefficiency Can Do Little to Contain Costs

Schwartz¹,

Mendelson²

1994

Health Affairs

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This study estimates potential savings from eliminating waste and inefficiency in the acute care sector (hospital, physician, and pharmaceutical). Our analysis indicates that in the unlikely event that all potential savings are achieved between 1994 and 2000, the rise in costs would be reduced by about 1.5 percentage points annually. This would slow the real rise in costs from a projected rate of 6.5 percent to 5 percent annually. Covering the uninsured would partially offset these savings and bring the rise in costs to more than 5.5 percent annually. If our estimate of potential efficiency savings is in error by plus or minus 50 percent, the projected rise in costs would be altered by about one percentage point. We conclude that savings from eliminating inefficiency are likely to fall far short of the Clinton administration's cost containment goals.

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confidence: 99%

Eliminating Waste and Inefficiency Can Do Little to Contain Costs

Schwartz¹,

Mendelson²

1994

Health Affairs

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“…These data provide a snapshot of a health care system that is largely insulated from free market mechanisms and burdened by excessive administrative costs. 1,2 Data from our study show that managed care reimburses less than commercial insurance companies presumably through negotiated price discounts. 3,4 On average, managed care groups in our sample enjoy a price discount of about 11%.…”

Section: Discussionmentioning

confidence: 76%

Billing and reimbursement for pediatric surgical services: a unique assessment of a complex process

Campbell

et al. 2004

Journal of Pediatric Surgery

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“…30,31 This overhead often includes profi t for US insurance companies not paid in many other developed countries. For example, Switzerland has dozens of insurance companies competing for patients, but they are not allowed to profi t from the primary health insurance product, only the supplemental policies.…”

Section: The Tipping Point-how Do We Break the Cost Curve?mentioning

confidence: 99%

Who Will Have Health Insurance in the Future? An Updated Projection

Young

DeVoe

2012

The Annals of Family Medicine

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The passage of the 2010 Patient Protection and Affordable Care Act (PPACA) in the United States put the issues of health care reform and health care costs back in the national spotlight. DeVoe and colleagues previously estimated that the cost of a family health insurance premium would equal the median household income by the year 2025. A slowdown in health care spending tied to the recent economic downturn and the passage of the PPACA occurred after this model was published. In this updated model, we estimate that this threshold will be crossed in 2033, and under favorable assumptions the PPACA may extend this date only to 2037. Continuing to make incremental changes in US health policy will likely not bend the cost curve, which has eluded policy makers for the past 50 years. Private health insurance will become increasingly unaffordable to low-to-middleincome Americans unless major changes are made in the US health care system.

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Administrative Costs in U.S. Hospitals

Cited by 9 publications

References 0 publications

Eliminating Waste and Inefficiency Can Do Little to Contain Costs

Eliminating Waste and Inefficiency Can Do Little to Contain Costs

Billing and reimbursement for pediatric surgical services: a unique assessment of a complex process

Who Will Have Health Insurance in the Future? An Updated Projection

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