Study: Southeast Wisconsin hospitals payment comparable with national average

Freeman Staff

Dec. 16, 2015

MILWAUKEE A study released Tuesday by the Greater Milwaukee Business Foundation on Health, Inc. revealed that from 2003 through 2014 on average the increase in southeastern Wisconsin hospital commercial payment levels was less than 50 percent of the rate of increase in the national Hospital Component of the Consumer Price Index.

The study, conducted by the consulting firm, Milliman, analyzed several key factors influencing southeast Wisconsin commercial payer hospital payment levels. The average southeast Wisconsin hospital commercial payment levels increased approximately 45 percent (3.4 percent annually) from 2003 through 2014.  This increase was less than half of the 93 percent total increase in the national Hospital Component of the CPI for the same period, according to the report.

The total increase in individual health system hospital commercial payments from 2003 through 2014 ranged from 18 percent to 80 percent.  

During those same years, area hospital per-unit operating costs increased at a substantially lower rate than national indices. According to the study, the average southeast Wisconsin hospital per-unit operating costs increased 18 percent from 2003 through 2014 approximately 1.5 percent annually. 

www.gmbfh.org