Tuesday, October 18, 2005

AHA - The Costs of Caring

Sources of Growth in Spending for Hospital Care
American Hospital Association - August 2005

Greater demand for hospital care, more complex treatments and the continued workforce shortage are major factors behind the growth in spending on hospital care from 1998 to 2003, according to a new report released by the American Hospital Association (AHA).

Of the increase in spending on hospital care from 1998 to 2003:

  • 52 percent is due to rising costs for the goods and services hospitals purchase to provide care. Rising wages and salaries account for three quarters of this increase as hospitals face a growing workforce shortage.

  • 43 percent is due to higher demand for care. The population is growing and aging and on average, each person is using more hospital services.

  • 5 percent is due to increased intensity of care provided. Hospital care is more complex due to both changes in demographics (older, frailer patients) and changes in technology (more sophisticated treatment options).

Press Release