Health Check: Analyzing Trends in West Michigan

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Hager-Lubbers Exhibition Hall

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PURPOSE: The health care sector is an important and growing part of the West Michigan economy, however, it currently faces significant challenges in the form of rising costs. SUBJECTS: Health Check, an annual report on health-related trends in West Michigan, covers three major subject areas: Knowledge Foundation, Health Care Trends, and Economic Analysis in four counties in West Michigan namely, Kent, Ottawa, Muskegon, and Allegan (KOMA). This paper focuses on the Economic Analysis section. METHODS AND MATERIALS: Data used in this project are from several sources including government databases, Blue Cross Blue Shield of Michigan, Blue Care Network, and Priority Health. ANALYSES: Descriptive statistics and comparative analysis were used to identify healthcare trends and compare Grand Rapids to several metropolitan areas to examine differences in the supply of hospital services, hospital expenses, Medicare expenditures, and a number of quality metrics. RESULTS: Grand Rapids residents have relatively few hospital admissions and their average length of stay is shorter compared to residents in peer communities. There has also been an increase in outpatient visits and fewer surgeries per capita. However, the total expenses per admission are relatively high and grew at a fast rate based on estimates of the average cost per admission of treating a patient. CONCLUSIONS: Evidence from data gathered show that the costs of medical care in West Michigan have been growing relative to a number of peer communities. While the primary cause of this growth is unclear, possible explanations include changing patient demographics, utilization, market structure, and technological advances.

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Apr 15th, 3:30 PM

Health Check: Analyzing Trends in West Michigan

Hager-Lubbers Exhibition Hall

PURPOSE: The health care sector is an important and growing part of the West Michigan economy, however, it currently faces significant challenges in the form of rising costs. SUBJECTS: Health Check, an annual report on health-related trends in West Michigan, covers three major subject areas: Knowledge Foundation, Health Care Trends, and Economic Analysis in four counties in West Michigan namely, Kent, Ottawa, Muskegon, and Allegan (KOMA). This paper focuses on the Economic Analysis section. METHODS AND MATERIALS: Data used in this project are from several sources including government databases, Blue Cross Blue Shield of Michigan, Blue Care Network, and Priority Health. ANALYSES: Descriptive statistics and comparative analysis were used to identify healthcare trends and compare Grand Rapids to several metropolitan areas to examine differences in the supply of hospital services, hospital expenses, Medicare expenditures, and a number of quality metrics. RESULTS: Grand Rapids residents have relatively few hospital admissions and their average length of stay is shorter compared to residents in peer communities. There has also been an increase in outpatient visits and fewer surgeries per capita. However, the total expenses per admission are relatively high and grew at a fast rate based on estimates of the average cost per admission of treating a patient. CONCLUSIONS: Evidence from data gathered show that the costs of medical care in West Michigan have been growing relative to a number of peer communities. While the primary cause of this growth is unclear, possible explanations include changing patient demographics, utilization, market structure, and technological advances.