Study: Technology Driving up Cost of Hospital Care in Texas | Healthcare Informatics Magazine | Health IT | Information Technology 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.

Topics

News

NewYork-Presbyterian, Walgreens Partner on Telemedicine Initiative

NewYork-Presbyterian and Walgreens are collaborating to bring expanded access to NewYork-Presbyterian’s healthcare through new telemedicine services, the two organizations announced this week.

ONC Releases Patient Demographic Data Quality Framework

The Office of the National Coordinator for Health IT (ONC) developed a framework to help health systems, large practices, health information exchanges and payers to improve their patient demographic data quality.

AMIA, Pew Urge Congress to Ensure ONC has Funding to Implement Cures Provisions

The Pew Charitable Trusts and the American Medical Informatics Association (AMIA) have sent a letter to congressional appropriators urging them to ensure that ONC has adequate funding to implement certain 21st Century Cures Act provisions.

Former Michigan Governor to Serve as Chair of DRIVE Health

Former Michigan Governor John Engler will serve as chair of the DRIVE Health Initiative, a campaign aimed at accelerating the U.S. health system's transition to value-based care.

NJ Medical Group Launches Statewide HIE, OneHealth New Jersey

The Medical Society of New Jersey (MSNJ) recently launched OneHealth New Jersey, a statewide health information exchange (HIE) that is now live.

Survey: 70% of Providers Using Off-Premises Computing for Some Applications

A survey conducted by KLAS Research found that 70 percent of healthcare organizations have moved at least some applications or IT infrastructure off-premises.