Recent data from the Health Care Cost Institute (HCCI) show that growth in hospitals’ commercial inpatient prices was higher in system-affiliated and non-profit hospitals from 2012-2021.
Key Findings:
- In the backdrop of a wave of hospital mergers, system-affiliated non-profit hospitals account for more than half of short-term general acute care hospitals in the US (from 50.6% in 2012 to 62.5% in 2021).
- Trend in ESI inpatient price has not been homogeneous. In our study, we observe heterogeneity in inpatient price growth among observable hospital characteristics such as profitability status. We find that inpatient prices for system-affiliated, particularly non-profit, hospitals grew the fastest compared to independent hospitals and system-affiliated for-profit hospitals.
- We also examined whether system-affiliated non-profit hospitals were treating more complex inpatient admissions in the employer-sponsored insurance. Our analysis found that for-profit hospitals had slightly higher case mix index compared to non-profit hospitals.
This descriptive paper by Jessica Y. Chang and Kathryn Martin was published in the November Issue of Health Affairs Scholar.