Skip to content Skip to navigation

Study: Technology Driving up Cost of Hospital Care in Texas

October 2, 2013
by Gabriel Perna
| Reprints

Technology is driving up the cost of hospital care in Texas reveal the authors of a recent report from Rice University’s Baker Institute for Public Policy. The findings contradict perception that the rising number of uninsured persons is behind the increase in prices that hospitals charge for treating privately insured patients.

“This misconception has distracted policymakers and workers in the healthcare sector from identifying effective strategies for cost control,” Vivian Ho, the chair in health economics at Rice University’s Baker Institute for Public Policy, said in a statement

For the study, Ho used data on revenues by payer type to identify the factors for rising hospital costs in Texas between 2000 and 2007. She discovered that approximately two-thirds of the increase in prices can be explained by increases in the costs of care, which may reflect the growth and use of more advanced technology.

“If technology growth is behind the cost increases, then greater efforts should be devoted to determining which technologies are cost-effective,” Ho said. “Greater thought could also be devoted to designing reimbursement mechanisms that discourage inefficient use of new technologies.”

Even though Ho said her study can explain more than half of the observed price increase with hospital, patient and market characteristics, a sizable portion remains unexplained. The study was supported by a grant from Rice University’s Social Sciences Research Institute and by the Baker Institute’s Sid Richardson endowment.



Survey: Healthcare Orgs Not Taking Mobile Security Seriously Enough

More than half (56 percent) of healthcare professionals believe their organization could be doing more to educate employees on HIPAA compliance and the rules around sharing protected health information.

Mount Sinai’s Research Arm Using Data Analytics to Address Health Inequities

The Arnhold Institute for Global Health at the Icahn School of Medicine at Mount Sinai is partnering with DigitalGlobe to create the Health Equity Atlas Initiative (ATLAS), a platform that standardizes and maps population data in order to generate insights that address health inequities.

FDA, Hospitals Work to Improve Data Collection about Medical Devices

The U.S. Food and Drug Administration is looking to improve the way it works with hospitals to modernize and streamline data collection, specifically safety data, about medical devices.

McKesson Unveils New Paragon Electronic Health Record Platform

McKesson Enterprise Information Solutions (EIS) announced the latest release of Paragon, its electronic health record (EHR) solution.

Catholic Health Initiatives and Dignity Health are in Merger Talks

Englewood, Colorado-based health system Catholic Health Initiatives is in merger talks with San Francisco-based Dignity Health to potentially create one of the largest nonprofit health systems by revenue in the country.

OSU Wexner Medical Center Receives AHIMA Grace Award

The Ohio State University Wexner Medical Center (OSUWMC) received the American Health Information Management Association (AHIMA) annual Grace Award in recognition of its leadership in health information management.