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Home America’s Hospitals and Health Systems Continue to Face Escalating Operational Costs

America’s Hospitals and Health Systems Continue to Face Escalating Operational Costs

Labor constitutes largest percentage of hospital expenses.

  • Source: Average expenses estimated by Strata Decision Technology median 2023 values across all hospital spending. Labor is inclusive of purchased services and professional fees.

Cumulative Medicaid and Medicare underpayments

  • Source: AHA Annual Survey 2013 to 2022 all dollars inflation adjusted to 2022 values using CPI-U from the BLS.

Hospital payments do not cover the costs of providing vital inpatient services

  • Source: AHA analysis of 2023 average service line payment and cost across all payers from Strata Decision Technology. Does not include supplemental payments from Medicaid.

Hospital payments also fail to cover the costs of providing essential outpatient services

  • Source: AHA analysis of 2023 average service line payment and cost across all payers from Strata Decision Technology. Does not include supplemental payments from Medicaid.

Premiums grew twice as fast as hospital prices in 2023

  • Source: Health insurance premiums represent premiums for a family of four, from KFF Employer Health Benefits Survey, 2023. Hospital Prices: BLS, annual average Producer Price index for hospitals.

Annual List Prices of Novel Drugs Launched in 2023*

  • Source: Annual list prices of novel drugs launched in 2023 are from a Reuters survey of new drug costs. Median household income is from 2022 Census Bureau data. Average price of new car is from Kelly Blue Book new-vehicle transaction price in December 2023.

Growth in Total Hospital Employee Compensation Far Outpaces Inflation

  • Source: BLS, annual average Employee Cost Index, 2014 to 2023 for hospitals and CPI-U, 2014 to 2023.

The U.S. spent $4,464.6 billion on health care in 2022. Where did it go?

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