Administrative costs in U.S. hospitals

Article Abstract:

Approximately 25% of a hospital budget may be spent on administrative costs. Researchers examined expenses during FY 1990 for 6,400 US hospitals that submitted reports to Medicare. Hospitals in Hawaii had the highest administrative costs, and those in Minnesota had the lowest. Twenty-two percent of the salary expense went to administrative personnel. States with a high enrollment in health maintenance organizations (HMOs) had hospital administrative costs similar to those with a low enrollment. Proponents of health care reform using managed competition have suggested that increased enrollment in HMOs will decrease the cost of health care. This plan for health care reform may need to be revised.

Management, Finance, Hospitals, Health care reform

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Costs of care and administration at for-profit and other hospitals in the United States

Article Abstract:

The administrative costs at for-profit hospitals have increased faster than at other types of hospitals. Researchers analyzed 1994 Medicare claims to calculate the administrative costs at 6,227 nonfederal hospitals and the total costs at 5,201 hospitals. Overall, administrative costs accounted for 26% of total costs, up 1.2% from 1990. For-profit hospitals spent 34% more on administrative functions than public hospitals and 23% more than private non-profit hospitals. In addition, for-profit hospitals incurred higher costs per patient and much of the difference was in administrative costs.

Hospitals, Proprietary, Proprietary hospitals

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A national health program for the United States: a physicians' proposal

Article Abstract:

A physicians' proposal for a national health plan is outlined. The proposal suggests that a national program should cover everyone under a single comprehensive public insurance program; pay hospitals and nursing homes annually to cover operating expenses; and pay for physicians and ambulatory services on a fee-for-service basis, through global budgets or on a per capita basis. Payments should be made from a common pool of money. This group suggests that money will be saved by reducing costs incurred as a result of bureaucracy and that ultimately overall spending will be limited.

Planning, Medical economics, Health insurance, Cost shifting (Medical care)

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