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Health Care Reform – The Drivers

Learn about the drivers of high healthcare costs and hospital profits in Texas, including factors such as waste, individual behaviors, clinical diversity, and operational inefficiencies. Discover ways to strategically battle escalating healthcare expenses. Explore the significant profits enjoyed by hospitals in major Texas cities like Dallas, Houston, and San Antonio. Gain insight into the average mark-ups of major hospitals and the challenges of offsetting inflated costs.

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Health Care Reform – The Drivers

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  1. Health Care Reform – The Drivers “Waste” accounted for 34% to 50% of the $2.2 trillion spent nationally on health care in 2007* Individual behaviors ~10% e.g., preventable risk factors like smoking, obesity or non-adherence to Rx regimen ~18% Clinical diversity e.g., defensive medicine, uneven adoption of evidence-based medicine ~58% ~14% Appropriate spending Operational inefficiency e.g., underuse of HIT, lack of process coordination across system, wasteful administrative overhead)

  2. Healthcare Drivers

  3. Hospital Profits Chances are you have been strategically battling to reduce your escalating healthcare costs. However, The hospitals in Texas are enjoying sizable profits (DFW, Houston, San Antonio, Austin) 2007 $2,428,596,674 2006 $2,329,544,827 2005$1,960,439,412 3 year total: $6,718,580,913 SOURCE: AMERICAN HOSPITAL DIRECTORY

  4. Hospital Profits Net Profit - Baylor $224,747,744 - MD Anderson $406,968,454 - Children’s Dallas $107,857,716 - Methodist San Antonio $120,834,000 - Seton $114,456,554 - Medical City Dallas $125,316,837 - Memorial Herman $130,517,755 - Texas Children’s Hosp $155,252,789 - Texas Women’s Hosp $ 81,772,017 - St. Luke’s $ 25,729,756 - North Cypress Medical Center $ 29,927,947

  5. Average Mark-up of Major Hospital in Texas Baylor 306% Presbyterian Dallas 303% MD Anderson 222% Methodist San Antonio 392% Memorial Herman 363% Children’s Dallas 276% Seton 350% TX Women’s Hosp 497% Medical City Dallas 506% TX Children’s 277% St. Luke’s 367% N. Cypress Med Ctr. 499% • No PPO Discount can offset these inflated mark-ups Source: American Hospital Directory

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