The document discusses the rising costs of health care in the United States. It notes that health care costs have increased significantly in recent years, with total spending reaching $3 trillion or $9,523 per person in 2014. Chronic diseases, an aging population, high administrative costs, and overtreatment all contribute to rising health care costs. As a health care administrator, addressing rising costs while still providing quality care and keeping patients and staff satisfied presents challenges.

1. THE RISING COSTS OF
HEALTH CARE AND SERVICES
By: Jerry Buissereth

2. WHY THIS TOPIC?
• I am a firm believer in that everyone deserves health care.
• If a person is sick and there are people out there that can help treat them, then that
should be enough for the person to get treated.
• Unfortunately, in the United States there are a bunch of other things that come into
play.
• One of the main points that prevent people from being able receive care are the
costs of the health care services.

3. WHY THIS IS IMPORTANT TO
HEALTH CARE?
• People cant afford to go to the doctors and get
treated.
• That leads to people avoiding doctors for
themselves and their families.
• That could lead to them getting a lot more sick
than if they were able to have gone in earlier.
• That could also lead to disease spreading more
quickly and putting a bigger burden on the
hospitals when those people do finally come in.

4. RISING COSTS HISTORY
• In 2014 U.S health care spending increased 5.3 percent following growth of 2.9
percent in 2013 to reach 3 trillion or $9,523 per person.
• Hospital care- spending for hospital care increased 4.1 percent to 971.8 billion in
2014 compared to 3.5 percent growth in 2013. The increase in growth in 2014 was
influenced by a reappearance in growth of non price factors, such as the use and
intensity of services.
• Physician and Clinical Services- Spending on physician and clinical services
increased 4.6 percent in 2014 to $603.7 billion from 2.5 growth in 2013 when
spending was a historical low.
https://www.cms.gov/research-statistics-data-and-systems/statistics-trends-and-
reports/nationalhealthexpenddata/downloads/highlights.pdf

5. RISING COSTS HISTORY
• Prescription Drugs- Retail prescription drug spending
accelerated in 2014, growing 12.2 percent to $297.7
billion compared to the 2.4 growth in 2013. The rapid
growth in 2014 was due to increased spending for new
medications.
• Other Health, Residential, and personal Care Services-
These services spending increased 4.1 percent in 2014 to
150.4 billion.
https://www.cms.gov/research-statistics-data-and-systems/statistics-
trends-and-
reports/nationalhealthexpenddata/downloads/highlights.pdf

6. HEALTH CARE IN OTHER COUNTRIES
• The United States health care system is the most
expensive health care system in the world.
• That does not mean they are number one in
rankings.
• The US actually ranks 11th among other wealthy
nations, France, Australia, Germany, Canada,
Sweden, New Zealand, Norway, the Netherlands,
Switzerland, and the U.k.
• Based on quality of care, access to doctors, and
equity throughout the country.
• Hellmann, M. (2014, June 17). U.S. Health Care Ranked Worst in
the Developed World. Retrieved December 01, 2016, from
http://time.com/2888403/u-s-health-care-ranked-worst-in-the-
developed-world/

10. WHY ARE COST RISING?
• Chronic Diseases- half of all adults in U.S have at least one chronic disease such as
heart disease, cancer, and diabetes.
• The population is getting older, so more people are in need of health care services.
• Chronic diseases contribute to rising health care costs because they are expensive to
treat.
• 86% of all health care spending is for patients with a chronic disease.
• Taube, S. (2016, January 12). What's Driving Rising U.S. Healthcare Costs? - United States Common
Sense. Retrieved December 01, 2016, from http://uscommonsense.org/research/whats-driving-rising-u-
s-healthcare-costs/

11. WHY ARE COSTS RISING?
• Unmanaged Pricing- prices for drugs and hospital
services are rising quickly and faster than overall
health spending's. Patients and providers are
commonly unaware of how much drugs and
services cost before agreeing to pay for them.
• Administrative Obligations- administrative costs
are the biggest toll when it comes to health care
spending.
• The cost to administer the Affordable Care Act
alone estimated at $273.6 billion.

12. WHY ARE COSTS RISING?
• Over Treatment- occurs when physicians and patients request unnecessary tests
and treatments.
• Fee for service healthcare payment model: provides payment for each visit, test, or
procedure. So patients can be ordered more than needed services and physicians
and hospitals make more money.
• Fear of malpractice lawsuits: physicians fear getting sued so they order more tests
and services on patients.

13. WHY IS THIS IMPORTANT TO A
HEALTHCARE ADMINISTRATOR?
• As a health care administrator you want to give the best quality care to your
patients.
• This includes the best prices for services as well.

14. CHALLENGES FACING THE
HEALTHCARE ADMINISTRATOR
• Patients complaining about high costs of the services.
• Physicians and other health care providers requesting raises probably due to
increase in patients.
• Lowering costs would mean physicians salaries would be decreased or increasing
their salary would mean higher cost for services.
• Having higher salaries for healthcare providers could lead to not being able to
afford adequate staff.
• Having to follow new ACA regulations costs money which could increase prices.

15. WHAT TO DO AS A HEALTHCARE
ADMINISTRATOR
• Hold staff meetings to discuss the changes brought on
by the ACA and hold trainings so all staff becomes
familiar with changes and what needs to be done. This
will help hold costs to the minimum in terms of the ACA.
• Make sure ALL physicians, nurses and other staff are
happy so they don’t feel it necessary to ask for salary
increases.
• Make customer service a number one priority in the
department or hospital.
• Having patients feel satisfied will make them feel better
when it comes to paying the costs for the services they
received.
• Have the most up to date equipment as this will help
decrease the number of times a test or procedure needs
to be done, and give better outcomes.

16. RECOMMENDATIONS
• As a health care administrator I would make it my priority and my staffs priority to
always put the patients first and to never turn down or treat a patient differently
based on their ability to pay.
• Having that understanding among staff would allow room for learning as a group
(the department, or hospital) on ways to decrease cost or ways to increase staffing
salary.

17. QUIZ!
• http://whatifpost.com/health-care-quiz

18. VIDEO!
• https://www.youtube.com/watch?v=Ro56CoQ7GoY
• https://www.youtube.com/watch?v=LOGyKz6NSxE

19. REFERENCES
• 1. Hellmann, M. (2014, June 17). U.S. Health Care Ranked Worst in the Developed World.
Retrieved December 01, 2016, from http://time.com/2888403/u-s-health-care-ranked-worst-
in-the-developed-world/
2. https://www.cms.gov/research-statistics-data-and-systems/statistics-trends-and-
reports/nationalhealthexpenddata/downloads/highlights.pdf
3. Taube, S. (2016, January 12). What's Driving Rising U.S. Healthcare Costs? - United States Common
Sense. Retrieved December 01, 2016, from http://uscommonsense.org/research/whats-driving-rising-u-s-
healthcare-costs/