4 Key Factors Increasing Healthcare Costs

Here are four key factors to healthcare cost increases, according to the Deloitte 2014 Global healthcare outlook report.

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1. Consolidation in the healthcare industry has increased 50 percent since 2009, and activity is expected to continue throughout this year. A hospital merger can drive up to 20.3 percent increase in prices.

2. Long hospital stays drive healthcare expenditures. Factors associated with longer hospital stays are patients with comorbidities and complications.

3. Generic medicines had dampened medical inflation until recently when complex biologics has nudged spending trends upwards. New biologics approvals now outpace traditional therapies and the trend is expected to continue throughout this year.

4. Medical service overuse leads to wasteful spending. Some have projected as much as 30 percent of healthcare spending in the United States is from overuse.

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