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Mass. Hospitals’ Operating Costs Are Below the National Average

BURLINGTON, Mass. — Dispelling the myth that Massachusetts hospital care is the most expensive in the nation, a new report by Ingenix Health Intelligence/Center for Healthcare Industry Performance Studies shows that most hospitals across the state are operating at costs significantly below national medians. Also, hospitals in the Commonwealth are treating patients with more complex conditions, according to the ‘patient case mix index,’ which, at 1.2337 is much higher than the national median of 1.0800.

The report also reveals that, relative to national averages, Massachusetts hospitals tend to be more efficient, with lower inpatient costs and higher inpatient occupancies. The study compares FY 2004 Massachusetts median hospital financial and operating indicators with national medians and incorporates data from the Almanac of Hospital Financial and Operating Indicators. The Mass. Hospital Assoc. provided operating indicator data for 67 hospitals. The report illustrates that median Massachusetts hospital costs are significantly lower than national averages, with Massachusetts median cost per discharge at $5,406 and the national median cost per discharge at $6,459.