S&P: Cost of Hospital Services Mildly on the Rise

The average per capita cost of hospital services covered by Medicare and commercial payers increased 2.02 percent from April 2012 to April 2013, a tick up from the 1.91 percent increase recorded in March, according to Standard & Poor’s Healthcare Economic Indices through April.

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Healthcare economic indicators have fallen and stagnated over the past six months. Even though revenue growth rates for hospitals and health systems from payers were up in April, they are still lower than rates recorded in September, when S&P’s Hospital Index hit its lowest annual rate (3.84 percent) since January 2005.

Hospital growth from commercial payers is still at some of the lowest levels in years. Through April, the Hospital Commercial Index was 1.89 percent, a new record low. In September, that index was at 5.1 percent.

Here are the latest S&P healthcare indices through April 2013.

S&P Healthcare Economic Indices (12-month moving average)

Composite Index: 3.16 percent
Medicare Index: 1.06 percent
Commercial Index: 4.54 percent

Hospital Index: 2.02 percent
Hospital Medicare Index: 2.15 percent
Hospital Commercial Index: 1.89 percent

Professional Services Index: 4.23 percent
Professional Services Medicare Index: -0.80 percent
Professional Services Commercial Index: 6.88 percent

More Articles on Healthcare Finance:
S&P: Economic Hospital Index Hits Historic Low in November
Municipal Bonds Rates at Lowest Levels Since Lyndon Johnson Presidency
S&P: Hospital Revenue Growth Rate From Payors at 7-Year Low

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