THE FACTS BEHIND HEALTH CARE COSTS IN SOUTHERN CALIFORNIA HOSPITALS
HOSPITALS’ EFFORTS TO CONTAIN RISING COSTS CONTRIBUTE SUCCESSFULLY TO OVERALL PICTURE
During the past decade, California hospitals have made tremendous strides in efficiency and cost-effectiveness and have effectively contributed to the curbing of what, during the 80’s, were spiraling healthcare costs. The following variables have contributed to this impact:
– Changes in medical treatment and technology, combined with the growth of managed care programs, have resulted in a significant volume of patient care being shifted from inpatient treatment to less expensive outpatient services. In 1993, community hospitals reported 367 million outpatient visits, an increase of 5.3 percent from the previous year and up 74.7 percent from 1983.
– For patients who are admitted to hospitals, advances in technology, less invasive procedures and the increased availability of home health services have led to shorter stays. The average length of stay in California hospitals dropped from 6.4 days in 1987 to 5.7 days in 1993. That’s more than a full day less that the 1993 U.S. average of seven days.
– With an increased emphasis on prevention and outpatient care, hospital admissions in California dropped from 132 admissions per 1,000 population in 1980 to 118.6 admissions per 1,000 population in 1992.
– Hospitals share expensive technology and services whenever possible to reduce health care costs, increase efficiencies, eliminate duplication of services and improve quality.
– An increasing number of hospitals and health systems are evolving into more cost-effective managed care systems. Nationwide, in 1993, nearly 11 percent of the nation’s community hospitals reported they were already involved in health systems utilizing or considering managed care. In California, managed care is the overwhelming system of choice for delivering health care. Hospitals all over the state routinely report dozens of managed care contracts. Those facilities not currently involved in or considering managed care are generally county facilities, rural hospitals or sole community providers.
– California hospitals continue to evaluate the process of delivering patient care to ensure that highly trained professionals are performing essential services. Work redesign plans such as “patient-focused care,” “hospital re-engineering” and other patient care delivery systems are in use or are being considered by a majority of facilities. These systems utilize the highly trained, educated professionals appropriately, delegating non-technical health care services to other qualified personnel. These new models of care are an excellent use of our health care labor force.
