Do higher costs mean better care? In some markets, yes

Receiving care from hospitals with higher inpatient prices leads to a 35 percent reduction in in-hospital mortality, but this relationship is mostly only true in relatively unconcentrated markets, according to a study by the National Bureau of Economic Research.

The analysis uses data from the Health Care Cost Institute. 

Unconcentrated markets with higher inpatient prices have a 1.37 percentage point decrease in mortality, a 53 percent increase in spending on emergency services and a 22 percent increase in one-year total health spending.

This proves these hospitals are spending an additional $1 million on nondeferrable emergency cases for every life that is saved, according to the study authors, who note the spending is likely cost-effective.

However, hospitals in highly concentrated markets with higher prices were not found to have lower mortality rates.

Read more here.

Copyright © 2022 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars