HIDA’s 2014 Acute Care Market Report is organized into four sections: Health Reform, Key Topics, Industry Data and Sales Data. Below a closer look at the insights you’ll find in each:
On January 1, 2014, key insurance expansion requirements of the Affordable Care Act (ACA) took effect. Twenty-six (26) states indicated they will expand their Medicaid programs—and as of April, 2014, the Administration announced that 7.5 million individuals had enrolled in insurance coverage through federal and state-based exchanges. In 2013, hospitals were penalized under the ACA’s Value-based Purchasing and readmission policies. Starting in FY2015, hospitals in the top quartile of infection rates will trigger a 1% reduction in total Medicare reimbursements. Since 2012, the Accountable Care Organizations established by the ACA have saved over $380 million. For the latest information on healthcare reform, please visit www.HIDA.org/Reform.
Since 2010, healthcare spending has grown at an average annual rate of 3.8%, the lowest ever recorded for any four-year period since 1960. Medical cost inflation will also be lower in 2014, at 6.5%. In 2013, merger and acquisition activity was down by 8%, while the deal value increased 14%. In contrast, the outpatient market is forecast to grow 17% through 2023. Other shifts include the rise in healthcare consumerism; a 2.1% increase in utilization due to newly insured patients; a delay in the twomidnight rule until 2015 and an increase in the number of healthcare providers becoming payers.
The trend to more outpatient and emergency department services continues to accelerate, and they were the most offered hospital services in 2012. At the same time, hospital expenses increased over 7%. To promote transparency and help consumers compare costs among providers, Health and Human Services (HHS) released the first-ever price comparison in 2013 for the 100 most common Medicare claims nationwide. Understanding these costs is key as the population continues to age and more people become eligible for Medicare. Two out of three older Americans have more than one chronic condition and treating them represents two-thirds of the nation’s healthcare expenses.
GHX Sales Data
Acute care sales (in dollars) were up 2.99% from 2012 to 2013, slightly ahead of the overall market’s increase of 2.62%. Unit sales growth of 2.76% also outpaced the market’s performance of 2.33%. Hospitals accounted for 60.68% of the market’s total projected sales of $38.9 billion. By market share in dollars, the top three categories in year-over-year growth were sterilization, respiratory and solutions/nutritional. In units, the top three categories were masks, parenteral and point of care testing reagents/supplies. Among the 10 fastest growing product categories in dollars, sterilization had the highest increase at 24.40%, followed by endoscopic supplies at 22.54%. In units, auditory saw the highest increase at 28.24%, followed by other medical surgicalproducts-durable at 23.38%.