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The Big Picture: A Look at Hospitals in a Volatile Healthcare Environment. Stuart H. Altman, Ph.D. Chaikin Professor of National Health Policy The Florence Heller Graduate School for Social Policy Brandeis University. Hospital Margins Not Keeping Up With Spending Growth.

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the big picture a look at hospitals in a volatile healthcare environment

The Big Picture: A Look at Hospitals in a Volatile Healthcare Environment

Stuart H. Altman, Ph.D.

Chaikin Professor of National Health Policy

The Florence Heller Graduate School for Social Policy

Brandeis University

spending growth now dominated by hospital services
Spending Growth Now Dominated by Hospital Services

Percentage of Yearly Medical Spending Increase

Source: Milliman USA Health Cost Index, in Strunk, Gabel and Ginsburg, 2001,Center for Studying Health System Change 2002

Stuart Altman

total hospital margins beginning to trend down
Total Hospital Margins Beginning To Trend Down

* Estimate

Sources:1997-2000 Moody’s all rating medians, 2001 AHA national hospital indicators survey

Stuart Altman

slide7
Increasing Demand For Services

Increased inpatient utilization

Continued growth in outpatient use

Increased ED use

Accelerating Cost of Services

But, Inadequate Payment Rates from

Medicaid

Uninsured, and

Medicare

Hospitals Face The Following Dilemma

Stuart Altman

slide9
Maybe---

Less Pressure From Managed Care

But---

What About

Growth of Specialty Hospitals, and

New Non-Hospital Delivery Systems that Focus on Well Paying Patients

Increased Patient Cost Sharing Could Reduce Use

Can We Count on Higher Payments From Private Payers In Future To Bail Out Lower Payments From Government and Increased Number of Uninsured?

Stuart Altman

advisory board we need more hospitals
Advisory Board – “We Need More Hospitals”

Additional Hospitals In 2011

Under Different Assumption

Stuart Altman