U.S. Hospital Cost Inefficiency

Running Head : Hospital cost inefficiency

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Current position of U .S hospitals

US hospitals currently are relying more on debts for purpose of capital investment . However the efficiency of a hospital can be determined by the quality of assets in terms of equipment that the hospital uses . This brings in the idea of capital due to involvement of Assets . Automatically capital affects efficiency to a large extent Inefficiency on the other hand affects a variety of variables for instance in a hospital setting

variables involved include Ownership payer mix , Network affiliation , bond insurance and ratings , HMO penetration among others

In US , currently higher bond ratings go hand in hand with lower cost inefficiency . Hospitals that have issued any bonds in the US today will automatically be faced by lower cost efficiency (Patrick Michael According to the poll , the growing cost of health care is creating unease in the general public 's eyes and the entire economy . Actually it calls for reform . An approximated 80 of respondent confirmed their dissatisfaction with the governments spending on health care

Every year Americans pay more but end up receiving less . Actually Americans expected a 2 .2 trillion or 7 ,129 a person each year as at this year but unfortunately this is not the case . In a research carried out , only 44 of the current populations agreed that the current system was good as far health care in the US was concerned . However , even those who did not 99 of them confessed that they were comfortable with the way they provided medical care for themselves . It 's important to note that the 99 of the population was forced to spend more on medical care in private hospitals . So that they would at least receive quality . In return however the efficiency of cost in America against inefficiency is being largely imbalanced

As we speak , the average cost per year of insurance plan offered by employers hit 11 ,765 by an average employee giving 3 ,226 of this money . A contrast is witnessed by average premiums rising to 87 from year 2000 while earnings for workers rose by only 20

However the impact of cost inefficiency in the US today is felt with different magnitude by the US citizens . Despite the rapid increase . This is because the health system is divided into two . Those who are insured and those who have no health insurance . To explain more on this and expound on the current trend of health care , the graph below explains (Julie Applyby 200 Source : USA TODAY /ABC News /Kaiser Family Foundation poll of 1 ,201 adults Sept . 7-12 , conducted by TNS . Margin of error /- 3 percentage points for insured /- 9 percentage points for uninsured Examples of cost inefficiency with statistical content

The largest expenditure in the US hospitals is on personnel . This includes take home pay and other closely related benefits . A case study conducted by governmorates of Alexandria , Suez , Bani Suef general hospital . 51 of the general...