Private hospital expenditure and relation to utilisation - observations from data

The CMS Annual Report for 2014/15 was published today (1 September 2015) showing increases of 11.6% in medical scheme expenditure on private hospitals and 10.6% in the average amount paid pabpa to private hospitals. Little is said about the underlying reasons for these increases and it is often assumed that they are driven mainly by tariff inflation. Econex’s latest research however proves otherwise, indicating larger increases in utilisation than tariffs over the past few years. Further detail is contained in this report.