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Hospitals bent the cost curve in the 90’s

July 2, 2012 by 1 Comment

Healthcare costsHospital Expenditures and Physician and Clinical Expenditures are the two largest categories of the NHE (National Health Expenditure), comprising 51% in 2010. Intriguingly, while these cost categories have been growing rapidly from 2000 to the present, we seemed to do an excellent job during the 90’s of bending the healthcare cost curve in these two categories. If only we knew how we did that.

This post looks at the growth rates of these big cahunas of healthcare, and is a continuation of our quest to understand the growth of healthcare costs.
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Filed Under: Healthcare costs, Healthcare opportunities Tagged With: ,

Top healthcare cost categories

March 19, 2012 by 2 Comments

This post examines the size of the different components that make up the total $2.6 Trillion National Healthcare Expenditures (NHE) of the USA. It also looks at the different growth rates of the components.

This is the third installment in our series on US healthcare costs. For background to this project, which is all about identifying fertile opportunity spaces resulting from runaway healthcare costs, see the introduction; the first installment; and second installment of the series.

Components of $2.6 Trillion US National Healthcare Expenditure (2010)

NHE components as percentage of NHE

The chart above depicts the $2.6 Trillion of US National Healthcare Expenditures in 2010 by category (1). These top 5 categories comprise the majority of this expenditure (74% of the total):

  • Hospital expenditures (31%);
  • Physician and Clinical expenditures (20%);
  • Prescription Drug expenditures (10%);
  • Administration & total Net Cost of Health Insurance expenditures (7%); and
  • Nursing Care Facilities and Continuing Care Retirement Communities (5%).

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Filed Under: Healthcare costs, Healthcare opportunities Tagged With: , , ,
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