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Alaska covers fewer kids with public insurance vs. 2019; Judge Cannon indefinitely postpones Trump's classified docs trial; Federal initiative empowers communities with career creation; Ohio teacher salaries haven't kept pace with inflation.

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Former Speaker Paul Ryan weighs in on the 2024 Presidential election. President Biden condemns anti-semitism. And the House calls more college and university presidents to testify on handling pro-Palestine protests.

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Bidding begins soon for Wyoming's elk antlers, Southeastern states gained population in the past year, small rural energy projects are losing out to bigger proposals, and a rural arts cooperative is filling the gap for schools in Pennsylvania and West Virginia.

Study: Health-Care Savings Lie Outside the Hospital Room

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Thursday, September 11, 2014   

TALLAHASSEE, Fla. – As debate over health care reform and the Medicaid expansion continues in Florida and the rest of the nation, one solution to the problem of health care costs could lie in how much hospitals spend on nonmedical-related expenses.

A study released this week by Physicians for a National Health Program found that nationwide hospital administrative spending totals $667 per capita in the U.S., compared with $158 in Canada.

Dr. Steffie Woolhandler, one of the study’s authors, says overhead costs increase in for-profit versus nonprofit Florida hospitals.

"I think Florida has allowed for-profit hospitals to flourish,” she maintains. “Florida has also encouraged a lot of for-profit HMOs and insurance plans to proliferate, and none of that lowers costs – and in fact our study indicates that that would raise administrative costs."

The study found no evidence that higher administrative costs in the U.S. lead to better care or other benefits.

Additionally, bureaucratic costs rose from 23 percent to 25 percent from 2000 to 2011.

Billing costs are one large contributor, according to the report, but it notes that competition and marketing expenses to drive profits also are driving up costs.

Woolhandler says one solution could lie in a simplified payment system.

The plan called single-payer reform where payments would come from a public fund, much like the model of fire and police departments.

"Hospitals have to collect co-payments and deductibles from virtually every patient who rolls through the door,” Woolhandler points out. “So the payment system imposes a tremendous amount of complexity on hospitals in the United States."

Woolhandler estimates that if the U.S. switched to a single-payer system, the reform could save $150 billion annually.




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