The document provides an overview of U.S. healthcare spending. It shows that in 2018, 31% of the $1.4 trillion in annual healthcare costs went to hospitals. The top 1% of patients accounted for $270 billion in costs, with an average of $86,000 per patient, while the bottom 50% accounted for $35 billion, with an average of $4,000 per patient. Government programs like Medicare and Medicaid paid for about two-thirds of hospital spending.

1. Pa?ent
Ins?tu?onal
providers
Hospitals
HMOs
Home-­‐based
providers
Ambulatory
ACOs
MD
office
Urgent
care
Convenient
|
retail
care
Nursing|
rehab
DME
Ancillary
services
Hospice
Labs
Imaging
Health
care
IT
Percent
of
$1.4
trillion
HC
Costs
and
Payors
in
Hospitals
(adds
to
total
hospital
%)
Home
health
3%
Other
Dental
ER
2%
4%
7%
Outpa?ent
9%
Medicare
15%
Hospital
31%
Prescrip?on
drugs
21%
Private
9%
Uninsured
1%
Payors
Office-­‐based
23%
100%,
$1,263
50%,
$1,228
5%,
$630
Cost
per
pa9ent
thousands
100%
0%
20%
40%
60%
$41
21%
2003
2004
2005
29%
2006
35%
2007
Other
1%
80%
42%
2008
48%
51%
2009
2010
Generics
Contract
Research
Organiza?ons
2011
2012
by
age
Other
32%
32%
34%
6%
4%
4%
5%
Liver
disease
Alzheimer's
Stroke
13%
Suicide
Heart
disease
13%
3%
6%
11%
21%
7%
12%
Accidents
7%
Cancer
38%
100%
57%
Causes
of
Death
26%
$86
Annually,
top
1%
of
pa?ents
cost
on
average
$86
thousand,
cumula?vely
$270
billion.
The
bo^om
50%
only
cost
on
average
$4
thousand,
cumula?vely
$35
billion
©
2013
Winton
Gibbons
17%
24%
Branded
Pharma
|
Biotech
25%
$14
1%
Contract
Sales
72%
Homicide
$4
5%
Wholesalers
Lower
respiratory
50%
$8
1%,
$270
Physician
EMR
Implementa9on
Devices
Cumula9ve
cost
billions
25%,
$1,091
Medicaid
5%
Hospitals
account
got
about
⅓
of
total
health
care
spending,
and
about
⅔
of
hospital
spending
is
government
funded
26%
26%
32%
22%
7%
1-­‐24
13%
25-­‐44
45-­‐64
65+
Diagnos?cs
Life
science
tools
Data
source:
AHRQ,
NCHS