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Understanding Hospital Costs

“The National Academy for State Health Policy’s (NASHP) Hospital Cost Tool (HCT) dashboard aims to provide state policymakers and researchers with analytical insights into how much hospitals spend on patient care services, and how such costs relate to the hospital charges (list prices) and actual prices paid by health plans. The dashboard reports on a range of measures for hospital revenue, costs, profitability, and break-even points across over 4,600 hospitals nationwide for the period from 2011 through 2019. The dashboard offers options to view data at the hospital, state, and health system levels. The underlying HCT dataset includes approximately 60 variables extracted and calculated using data from the national Healthcare Cost Report Information System (HCRIS) as the main data source. Hospitals in this dataset represent approximately 70 million patient discharges and $49 billion hospital net income in the most recent reporting year.”

Understanding NASHP’s Hospital Cost Tool: “Commercial Breakeven – As states and other payers seek to address high and rising hospital prices, they confront important questions, including “what is a reasonable price for care?” The commercial breakeven — a data point available in the National Academy for State Health Policy (NASHP)’s Hospital Cost Tool — can help. This overview highlights the NASHP tool and how states and other payers can use this key data point to inform hospital reimbursement negotiations…”

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