Hospital cost containment in the 1980s: hard lessons learned and prospects for the 1990s
Article Abstract:
During the 1980s attempts were made to reduce the rising costs of hospital care by reducing the total number of people admitted to the hospital and reducing the length of stay for those who were hospitalized (inpatient days). To determine the effectiveness of this initiative, a retrospective study was performed to determine the amount of money saved, the rate of increase in costs, and future savings that may be obtained by reducing inpatient days. Between 1981 and 1988 the total number of inpatient days decreased by 28 percent, with the greatest reductions occurring during 1984 and 1985. However, the rate of reduction in the number of inpatient days slowly declined during subsequent years until 1988, when no further reductions were observed. For a brief period during the mid-1980s the rate of increase of hospital costs was reduced. This effect could be entirely accounted for by the reduction in the number of inpatient days, indicating that attempts to contain spending had no effect on the rate of increase in costs. The dollars saved by reducing the number of inpatient days were offset by the increase in the number of outpatient visits. From 1976 to 1988 the annual increase in Medicare spending for hospital services declined from 9 percent to less than 1 percent, while spending by non-Medicare sources increased from 5 percent to 9 percent per year. It is concluded that in the future reducing the number of inpatient days will not reduce the increasing costs of hospital care, and that a larger portion of the costs will be paid by non-Medicare sources. (Consumer Summary produced by Reliance Medical Information, Inc.)
Publication Name: The New England Journal of Medicine
Subject: Health
ISSN: 0028-4793
Year: 1991
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Physician need: an alternative projection from a study of large, prepaid group practices
Article Abstract:
If health maintenance organizations (HMOs) are going to continue to offer services to members, more physicians will be needed than the Graduate Medical Education Advisory Committee predicts will be available. The study estimates a base-level demand of 111 physicians per 100,000 clients. The study was conducted by surveying the medical director of seven larger HMOs to determine the group's number of full-time physicians by specalty and members served. The disciplines with the largest deficit between need and availability include psychiatry, emergency medicine and anesthesiology.
Publication Name: JAMA, The Journal of the American Medical Association
Subject: Health
ISSN: 0098-7484
Year: 1989
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