Media Release

For: Immediate Release
Date: May 19, 2004
Contact: Bruce Cryan (401) 222-5123

RI Hospitals Among the Least Expensive in 
New England

Hospital Costs in Rhode Island (2002)

Today, the Rhode Island Department of Health (HEALTH) released a report, Hospital Costs in Rhode Island (2002), comparing hospital costs in RI to those in other states. According to the Report, hospitals in RI ranked the 2nd least expensive in New England (behind NH) and received the lowest reimbursement in the region. Nationally, RI ranked the 19th least expensive state, and the 8th lowest reimbursed of all states for acute, hospital services.

"This report continues HEALTH’s role as a key provider of healthcare performance information", said Patricia A. Nolan, MD, MPH, Director of Health. "The current state and national environment raises questions about the status of health care costs and trends. These data on comparative hospital costs will inform the public and help guide health policy in the days ahead."

The Report uses data from the American Hospital Association on patients at all acute-care hospitals in the state. It computes three separate measures of costs (per-capita expenses; unit-expenses and unit-reimbursement) and tracks costs changes from 1999 to 2002.

Author Bruce Cryan, notes that the hospitals in Rhode Island are generally very cost-efficient and operate with relatively low reimbursement rates. This situation favors the purchasers of hospital services--as long as hospitals remain profitable. However, if profitability declines, the quality of hospital care could be affected.

The Report is available on HEALTH’s website. Additional reports on hospital clinical performance, community benefits, patient satisfaction, and financial performance are also available on this site.