Axene Health Partners, LLC has just released a report on California Hospitals (i.e., 2016 California Hospital Risk Outlook). This is the first in a series of reports on hospital inpatient care throughout the United States. AHP plans to update this information annually.

Key findings from this report are:

  • California inpatient costs can be reduced by about 25% (i.e., more than $10 billion for the 275 studied hospitals).
  • Significant savings potential exists for all payers
  • Significant cost shift between public and private exists (i.e., commercial payers pay 60% more for care than the average)
  • Regional efficiency differences exist with the least efficient areas being Los Angeles County and San Francisco County.
  • The smallest hospitals tend to be the most efficient
  • There is negligible difference in efficiency between for-profit and non-profit hospitals. Public hospitals are the least efficient.
  • The most efficient hospitals in the state are identified.