The following is the second in a series of briefs on rising health care costs published by the Rhode Island Business Group on Health. Click here to read the first brief on RI's Ongoing Struggle with Health Care Costs.
Hospitals in Rhode Island and across the country account for the largest portion of medical expenses driving up the cost of commercial health insurance premiums that Rhode Island’s families, businesses, municipalities, unions, and state agencies pay.
Only recently have hospital prices and quality metrics been used to evaluate the value of hospital services. To define this value, the efficiency of the hospital also must be considered along with price and quality. Measuring efficiency requires transparent hospital expense data, including overhead costs, as a critical foundation. Once hospitals get rising overhead costs under control, they can bend the cost curve, benefiting the entire health care system, including hospitals themselves, health insurers, businesses, and consumers.
Read full brief here (pdf).