U.S. Hospitals Taking Steps to Make Healthcare More Affordable and Accessible
TL/DR –
The article focuses on the strategies hospitals in America are implementing to make healthcare more affordable and accessible. Cost drivers include administrative burdens, hospitals representing 31% of total healthcare spending, high prescription drug costs and inadequate payments for essential services. Meanwhile, hospitals are also finding themselves under financial pressure as their expenses rise faster than payments, attributing to increased costs of highly skilled workers, drugs and supplies, as well as government underpayments.
The Affordability Issue of American Health Care
Health care affordability is a major concern for many Americans. Recognizing this, hospitals and health systems, as the foundation of the U.S. health care system, are working on ensuring that high-quality care is both affordable and accessible.
Across the United States, hospitals are modifying their methods to ensure care is affordable, accessible, and patient-centric.
Improving Affordability Through Hospital Solutions
“Hospitals and health systems are committed to delivering high-quality, accessible, and affordable care. However, improving affordability is a shared responsibility and requires the concerted efforts of drug companies, commercial insurers, suppliers, the government, patients, and more”, said Rick Pollack, CEO of the American Hospital Association (AHA).
What’s Driving Health Care Costs?
Health care costs are influenced by several factors. Hospitals only account for 31% of total health care spending, meaning over two-thirds are driven by other parts of the system. This includes physician services, prescription drugs, insurers, and administration.
Hospitals face intense pressure as the cost of delivering care continues to rise. Expenses are increasing faster than payments, workforce accounts for more than half of hospital costs, and critical inputs like drugs and supplies are surging. In addition, government payments often fall short of the actual costs of caring for patients.
The Rising Costs of Patient Care in Hospitals
Hospitals are facing significant financial pressure as the cost of care delivery continues to increase. The expenses are growing faster than payments, workforce accounts for more than half of hospital costs, and the prices of critical inputs like drugs and supplies are surging. Furthermore, government payments often fall short of the actual costs of caring for patients.
Prioritizing Patients and Protecting Access
Despite these challenges, hospitals continue to prioritize patients. Every day, hospitals strive to ensure patients can access needed care, regardless of their ability to pay. They are also investing in care coordination, efficiency, and community health programs to reduce costs and improve outcomes.
How Hospitals Are Lowering Costs and Enhancing Value
Hospitals and health systems are adopting innovative methods to make care more affordable, accessible, and patient-centered. Discover a few examples of how hospitals and health systems are working to make care more affordable for patients.
Videos: Health Care Cost FAQs Answered by Clinicians
Why am I getting a bill for a hospital visit when I have insurance?
Chris DeRienzo, M.D., chief physician executive and senior vice president at the American Hospital Association, explains why insurance billing can be confusing, with various factors affecting what you owe.
What if I can’t afford my bill?
Claire Zangerle, DNP, R.N., senior vice president and chief nurse executive at the American Hospital Association (AHA) and CEO at the American Organization for Nursing Leadership (AONL), explains why you should contact your hospital if you can’t afford your bill.
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