3 Key Drivers of Labor Cost

Discussion in 'Healthcare Reform Discussions' started by S.S., Mar 17, 2020 at 1:25 AM.

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  1. S.S.

    S.S. Guest

    3 key drivers of labor costs within a hospital include advancements in technology, present market, and the increase of hospital systems.
    As years go by, technology advances by leaps and bounds, which the healthcare field has truly benefited from. These advances have allowed stents to be created and then strategically inserted in a patient's arteries and even Artificial Intelligence to create drugs faster than any human. With all of these making a debut in the healthcare field while making strides and improving overall healthcare, it is easy for one to see why healthcare prices are increasing. I believe with many different companies developing technology for the health care field it will decrease the cost of care. I predict that health care policies will support the price hikes as technology advances.
    The current market value has a serious impact on healthcare prices as well. As the market crashes, prices dip down dramatically. But with the reason for the market crashing being healthcare related, it can swing the prices high up on the candle stick. As laboratories fight to come up with solutions to the current healthcare crisis and the demand for many medical items are high, we will see the prices creep higher than they already are. Currently, I don't see a change in the recent hike in prices until the dust settles with the Corona virus. But according to Deloitte Center for Health Solutions, "While Congress and the administration have been pushing for more interoperability and greater price transparency for drugs and for hospital costs, these changes are actually being pushed by, or at least inspired by, consumers."
    As of late, we are also seeing hospital mergers on the rise. Many hospitals are trying to create a large system while utilizing their ranking, strength, and power as they team up with other powerful hospitals and doctors. "Hospitals systems are growing more powerful, and individual hospitals are also increasingly likely to belong to a multiprovider health system rather than operating independently." A solution to price hikes caused by these mergers would be to utilize the hospitals new growth to give back to the community and by stabilizing the prices. This in turn will increase trust within the community, which will also increase revenue. I think in the near future there will be many lobbying against these unfair price hikes that leave patients without quality health care.
    There are many reasons for price hikes within a hospital, but hospital mergers, the market value and the recent advances in the health care field are amongst the top. As we look at the vitality in the current market it is hard to predict what is coming next. But to be honest, it is beginning to look a lot like....The Depression.


    The High Price of Hospital Care - Center for American Progress

    2020 US and Global Health Care Outlook