February 21, 2019

Rising Hospital Prices Are Driving Up Health Care Spending - New Research Insights

Health care spending for the privately insured rose 20% overall from 2007 to 2014, and rising provider prices are a primary driver of this growth. A new study found that hospital prices paid by private insurers for inpatient and outpatient care grew much more quickly than the prices paid to the physicians who provide care in these settings. For all inpatient care, hospital prices grew by 42 percent compared to 18 percent for physician prices. The same pattern was observed for four specific high-volume hospital-based procedures. This Research Insights summarizes the findings of this study, conducted by NIHCM grantee Zack Cooper and colleagues, and outlines proposed policy solutions.