"The Ronan Report" provides insight about the activities at the Western Maryland Health System in Cumberland, Maryland, and about the changes taking place in healthcare today from a CEO's perspective.

Tuesday, July 1, 2014

US Health Spending: It's More Than Just the Economy

According to the Commonwealth Fund, US health care spending has been declining since 2009 in a similar manner to other industrialized nations.  However, they attribute the decline to the economic downturn from 2008 and beyond, not the Affordable Care Act (ACA).  I disagree that the reduction is exclusively due to the decline in each economy.   

Two factors related to the ACA are greater control of health care spending by government and a dramatic decrease in labor costs in US hospitals due to less admissions, readmissions and ED visits.  Now, price increases for supplies and small equipment having been significantly reduced and major equipment suppliers having excess inventory so equipment is priced to sell are directly attributable to the economy.  So, both have played a part, but it is not exclusively the economy; just my two cents for what it's worth.  

Actually, I am surprised that the Commonwealth Fund didn't take the opportunity to promote the ACA as they have been doing since its passage.

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