• Corpus ID: 56556200

Hospital Overhead Costs: The Neglected Driver of Health Care Spending?

  title={Hospital Overhead Costs: The Neglected Driver of Health Care Spending?},
  author={Noah S. Kalman and Bradley G. Hammill and Kevin A. Schulman and Bimal Ramesh Shah},
  journal={Journal of health care finance},
Objective : To examine temporal trends in hospital overhead costs relative to total hospital costs, hospital inpatient beds, and inpatient days in United States hospitals. Methods : Using Medicare data regarding nonfederal acute care hospitals in the United States, we conducted analyses of hospital overhead costs, total hospital costs, inpatient bed capacity, and inpatient days for nonfederal acute care hospitals from 1996 through 2010. Overhead costs were examined as a function of total beds… 
Implementation of a Value-Driven Outcomes Program to Identify High Variability in Clinical Costs and Outcomes and Association With Reduced Cost and Improved Quality.
Implementation of a multifaceted value-driven outcomes tool to identify high variability in costs and outcomes in a large single health care system was associated with reduced costs and improved quality for 3 selected clinical projects.
Impeding Access or Promoting Efficiency? Effects of Rural Hospital Closure on the Cost and Quality of Care
It is shown that rural hospital closure led to both a decrease in Medicare spending and an increase in mortality among enrollees with time-sensitive health conditions, and the CAH program led to a reduction in hospital closures and an improvement in mortality but the program’s expenditures were substantial relative to these effects.
Development of clinical value unit method for calculating patient costs.
The study showed that length of stay cost allocation method may underestimate the proportion of indirect costs in patient costs for a short in-patient stay and overestimate the cost for the patients with a long stay.
Spending on Cardiovascular Disease and Cardiovascular Risk Factors in the United States: 1996 to 2016
Policies tailored to control service price and intensity and preferentially reimburse higher quality care could help counteract future spending increases caused by population aging and growth.
Levels, trends and determinants of technical efficiency of general hospitals in Uganda: data envelopment analysis and Tobit regression analysis
There is need to incorporate hospital size, geographical location, training status and average length of stay in the resource allocation formula and adopt annual hospital efficiency assessments.
Treatment Costs of Chiari Malformation Type 1
This chapter will use an illustrative study to describe how to identify the drivers of hospitalization costs and develop a hospitalization cost model for the surgical treatment of pediatric Chiari malformation type I.
Are costs derived from diagnosis-related groups suitable for use in economic evaluations? A comparison across nine European countries in the European Healthcare and Social Cost Database
This study describes the available data on costs of hospital DRG from official, publicly available sources in nine European countries, critically examines and compares the methodologies used to construct these databases and comments on the appropriateness of such unit cost data for economic evaluation.
Costs of Providing Infusion Therapy for Rheumatoid Arthritis in a Hospital-based Infusion Center Setting.
Costs of providing infusion therapy for patients with inflammatory bowel disease in a hospital-based infusion center setting
Evaluating US hospital-based infusion services costs for treatment of UC or CD patients receiving infliximab or vedolizumab therapy highlights the value to hospital administrators of assessing cost associated with infusion patient mix to make more informed resource allocation decisions.
Factors Affecting the Cost and Profitability of Arthroscopic Rotator Cuff Repair.
  • V. SabesanR. Shahriar J. Whaley
  • Medicine
    Arthroscopy : the journal of arthroscopic & related surgery : official publication of the Arthroscopy Association of North America and the International Arthroscopy Association
  • 2019


The cost of inefficiency in US hospitals, 1985-1997.
We conducted a descriptive analysis of data from the Hospital Cost Report Information System from 1985 through 1997 on nonfederal, short-stay hospitals in the United States with 12-month reporting
Costs of care and administration at for-profit and other hospitals in the United States.
Administrative costs as a percentage of total hospital costs increased in the United States between 1990 and 1994 and were particularly high at for-profit hospitals.
Distribution of variable vs fixed costs of hospital care.
The majority of cost in providing hospital service is related to buildings, equipment, salaried labor, and overhead, which are fixed over the short term.
Administrative costs in U.S. hospitals.
Hospital administrative costs in the United States are higher than previous estimates and more than twice as high as those in Canada.
The Accuracy of Proportional Cost Models: Evidence from Hospital Service Departments
Using data from hospitals in the state of Washington, we examine the time-series behavior of overhead costs. We find that more accurate predictions of changes in costs are usually generated by
Hospitals respond to Medicare payment shortfalls by both shifting costs and cutting them, based on market concentration.
Empirical evidence is presented that, faced with shortfalls between Medicare payments and projected costs, hospitals in concentrated markets focus on raising prices to private insurers, while hospitals in competitive Markets focus on cutting costs.
Hospital readmission as an accountability measure.
Hospitals will be held accountable for their readmission rates and adjusting payments to hospitals in 2013 according to their rate of “excess” vs “expected” Medicare readmissions for pneumonia, AMI, and HF, with passage of the Patient Protection and Affordable Care Act.
Medicare's bundling pilot: including post-acute care services.
  • L. Dummit
  • Medicine, Political Science
    Issue brief
  • 2011
This issue brief focuses on the unique challenges posed by the inclusion of post-acute care services in a payment bundle and special considerations in implementing and evaluating the episode payment approach.
How much do hospitals cost shift? A review of the evidence.
  • A. Frakt
  • Medicine, Political Science
    The Milbank quarterly
  • 2011
Examining the theoretical and empirical literature on cost shifting since 1996, synthesizes the predominant findings, suggests their implications for the future of health care costs, and puts them in the current policy context suggests that cost shifting can and has occurred, but usually at a relatively low rate.
Spending differences associated with the Medicare Physician Group Practice Demonstration.
Substantial PGPD savings achieved by some participating institutions were offset by a lack of saving at other participating institutions, and most of the savings were concentrated among dually eligible beneficiaries.