CT hospital costs rise 16.2%
The state's 29 acute care hospitals have seen their total expenses jump 16.2 percent over the last four years, largely a result of higher spending on doctors, nurses and other personnel, new data shows.
Connecticut hospitals rang up $9.98 billion in expenses in fiscal year 2012, up from $9.4 billion a year earlier and $8.6 billion in fiscal 2009, recently released data from the state Office of Health Care Access shows.
The biggest cost driver was personnel. In fact, spending on nurses, doctors, administrators, and other staff consumed more than 50 percent of hospital expenses. Here's a breakdown:
• Hospitals spent $3.9 billion on salaries and wages in fiscal 2012, up 11.3 percent from fiscal 2008. An additional $1.2 billion was spent on fringe benefits and $603 million on contract labor fees, up 25.9 percent and 26.3 percent respectively.
• Besides personnel, two other major cost drivers were medical supplies/pharmaceuticals and business expenses, with pricetags of $1.3 billion and $1.6 billion, respectively.
• Hospitals also saw a spike in interest expenses, which grew 35 percent over four years to $84 million in fiscal 2012.
The data helps shed light on what is driving healthcare costs in Connecticut. While expensive medical equipment and technology can carry hefty pricetags, it's clear that hospital staffs are a key cost driver.
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