The real costs for the average hospital acute care patient are declining. As noted yesterday this is true for both Ontario and Canada, based on data just released from the Canadian Institute for Health Information (CIHI). But the CIHI data also revealed other interesting trends, likely related. Administrative Costs Decline: Administrative costs fell from 6.21% of total expenses in 2009-10 to 6.15% in 2010-11 and then down to 5.91% in 2011-12. With a total hospital spend in the range of $21 billion in Ontario, this 0.3% reduction frees up about $63 million annually. The decline in administrative costs across Canada has also been marked, declining by a similar amount as in Ontario to fall to 4.7% of total hospital expenditures. Long-Term Efficiencies Achieved in Support and Administrative Services: This decline in administrative costs is part of a longer term trend. A 2005 report from CIHI indicated administrative expenses took up significantly mor
Notes from Leftwords -- Doug Allan