1. RISING HEALTHCARE COSTS
Soaring costs aren’t new, as providers are painfully aware. What they may not know is just how much costs have risen. In 1960, healthcare costs were 5% of the gross domestic product (GDP), according to the American Medical Association. In 2017, they were 17.9% of the GDP at $3.5 trillion, making healthcare one of the country’s largest industries. This equated to $10,739 per person in 2017, up dramatically from $146 per person in 1960.
The skyrocketing costs can be attributed to many factors, including a growing number of chronic illnesses, higher healthcare and drug costs in the U.S. compared to other countries, an aging population in need of care, and expensive technologies used for diagnoses and treatments. Costs are expected to continue to escalate. The Centers for Medicare & Medicaid Services Office of the Actuary predicts national healthcare expenditures to reach about $6 trillion by 2027.
Rising costs are forcing providers to streamline and be more mindful of expenses. One way to contain costs is by utilizing best practices and partnering with a group purchasing organization (GPO). For example, Provista utilizes more than $100 billion in purchasing power to secure competitive prices for members, offers analytics to identify cost savings, and provides expertise to enhance quality and performance.