It should be no surprise as employment, job openings and wage rates are all pointing to a accelerated use of the health care system. Hospital PMI increased 11.3% in November, according to the Institute for Supply Management. Case mix increased from 53 to 57.5. The commentary indicated that labor shortages have eased, paving the way for added capacity.
We should expect case mix to continue its climb. ISM commentary indicated that elective surgeries are returning but the rate is still slow - no doubt still frustrated by declerating but historically higher labor costs.
We dedicated a presentation yesterday on how the other side the health care expenditure coin - Managed Care Organizations - because you cannot have increased spending on services and not also see higher benefit costs. Link here.
Emily Evans
Managing Director – Health Policy
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