Unchecked hospital price increases could cost $250 billion over the next decade

A new report from UnitedHealth Group finds that hospital prices increasing at current rates could end up costing $250 billion over the next decade. The report says that prices set by hospitals for services  — and not physician salaries or how much hospital services get used — are what’s driving up patients’ spending. Between 2013 and 2017, for instance, hospital prices increased by 19% while the cost of physician services increased by half that amount. Utilization of hospital and physician services each decreased by 5%. The hospital price for appendectomies and blood pressure services saw the most cost increases, at more than 6% each. At the same time, physician services for childbirth saw a 2% price increase. Cutting back on hospital prices by two percentage points could save the projected $250 billion in spending for patients, the report states.