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MEMPHIS HEALTHCARE EXPENDITURES May 11, 2010

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Page 1: MEMPHIS HEALTHCARE EXPENDITURES May 11, 2010. Healthcare Expenditures  What do we mean by “healthcare expenditures”?

MEMPHIS HEALTHCARE EXPENDITURES

May 11, 2010

Page 2: MEMPHIS HEALTHCARE EXPENDITURES May 11, 2010. Healthcare Expenditures  What do we mean by “healthcare expenditures”?

Healthcare Expenditures

What do we mean by “healthcare expenditures”?

Page 3: MEMPHIS HEALTHCARE EXPENDITURES May 11, 2010. Healthcare Expenditures  What do we mean by “healthcare expenditures”?

Healthcare Expenditures

What do we mean by “healthcare expenditures”?

How much do we spend in the U.S.?

Page 4: MEMPHIS HEALTHCARE EXPENDITURES May 11, 2010. Healthcare Expenditures  What do we mean by “healthcare expenditures”?

Healthcare Expenditures

What do we mean by “healthcare expenditures”?

How much do we spend in the U.S.?$6,400 per person

Page 5: MEMPHIS HEALTHCARE EXPENDITURES May 11, 2010. Healthcare Expenditures  What do we mean by “healthcare expenditures”?

Healthcare Expenditures

What do we mean by “healthcare expenditures”?

How much do we spend in the U.S.?$6,400 per person

How much do we spend in Shelby County?

Page 6: MEMPHIS HEALTHCARE EXPENDITURES May 11, 2010. Healthcare Expenditures  What do we mean by “healthcare expenditures”?

Healthcare Expenditures

What do we mean by “healthcare expenditures”?

How much do we spend in the U.S.?$6,400 per person

How much do we spend in Shelby County?

$7,200 per person

Page 7: MEMPHIS HEALTHCARE EXPENDITURES May 11, 2010. Healthcare Expenditures  What do we mean by “healthcare expenditures”?

The Data

Shelby County estimates for 2008 are made using the National Health Expenditures data set. Tennessee amounts and trends (‘91 – ‘04) National trends (‘91 – ‘08) Historical allocation of Tennessee health dollars

to the different regions (‘06 – ‘08)

Page 8: MEMPHIS HEALTHCARE EXPENDITURES May 11, 2010. Healthcare Expenditures  What do we mean by “healthcare expenditures”?

The Math

Total healthcare dollars in Shelby County:

Shelby County population:

Page 9: MEMPHIS HEALTHCARE EXPENDITURES May 11, 2010. Healthcare Expenditures  What do we mean by “healthcare expenditures”?

The Math

Total healthcare dollars in Shelby County:

$6,723,266,558

Shelby County population:

Page 10: MEMPHIS HEALTHCARE EXPENDITURES May 11, 2010. Healthcare Expenditures  What do we mean by “healthcare expenditures”?

The Math

Total healthcare dollars in Shelby County:

$ 6,494,548,012 Shelby County population:

906,825

Page 11: MEMPHIS HEALTHCARE EXPENDITURES May 11, 2010. Healthcare Expenditures  What do we mean by “healthcare expenditures”?

The Math

Total healthcare dollars in Shelby County:

$ 6,494,548,012

Shelby County population:

906,825

$ 6,494,548,012 906,825 =

Page 12: MEMPHIS HEALTHCARE EXPENDITURES May 11, 2010. Healthcare Expenditures  What do we mean by “healthcare expenditures”?

The Math

Total healthcare dollars in Shelby County:

$ 6,494,548,012

Shelby County population:

906,825

$ 6,494,548,012 906,825 = $7,162

Page 13: MEMPHIS HEALTHCARE EXPENDITURES May 11, 2010. Healthcare Expenditures  What do we mean by “healthcare expenditures”?

Where does the money go?

Hospitals __ % Physicians __ % Pharmacy __ % Long-term Care & DME __ % Lab and Radiology __ % Dental Care __ % OTC Drugs & Non-durable Supplies

__ %

Other Professional Fees __ %

Page 14: MEMPHIS HEALTHCARE EXPENDITURES May 11, 2010. Healthcare Expenditures  What do we mean by “healthcare expenditures”?

Where does the money go?

Hospitals 36 % Physicians __ % Pharmacy __ % Long-term Care & DME __ % Lab and Radiology __ % Dental Care __ % OTC Drugs & Non-durable Supplies

__ %

Other Professional Fees __ %

Page 15: MEMPHIS HEALTHCARE EXPENDITURES May 11, 2010. Healthcare Expenditures  What do we mean by “healthcare expenditures”?

Where does the money go?

Hospitals 36 % Physicians 23 % Pharmacy __ % Long-term Care & DME __ % Lab and Radiology __ % Dental Care __ % OTC Drugs & Non-durable Supplies

__ %

Other Professional Fees __ %

Page 16: MEMPHIS HEALTHCARE EXPENDITURES May 11, 2010. Healthcare Expenditures  What do we mean by “healthcare expenditures”?

Where does the money go?

Hospitals 36 % Physicians 23 % Pharmacy 14 % Long-term Care & DME __ % Lab and Radiology __ % Dental Care __ % OTC Drugs & Non-durable Supplies

__ %

Other Professional Fees __ %

Page 17: MEMPHIS HEALTHCARE EXPENDITURES May 11, 2010. Healthcare Expenditures  What do we mean by “healthcare expenditures”?

Where does the money go?

Hospitals 36 % Physicians 23 % Pharmacy 14 % Long-term Care & DME 8 % Lab and Radiology __ % Dental Care __ % OTC Drugs & Non-durable Supplies

__ %

Other Professional Fees __ %

Page 18: MEMPHIS HEALTHCARE EXPENDITURES May 11, 2010. Healthcare Expenditures  What do we mean by “healthcare expenditures”?

Where does the money go?

Hospitals 36 % Physicians 23 % Pharmacy 14 % Long-term Care & DME 8 % Lab and Radiology 6 % Dental Care 5 % OTC Drugs & Non-durable Supplies

5 %

Other Professional Fees 4 %

Page 19: MEMPHIS HEALTHCARE EXPENDITURES May 11, 2010. Healthcare Expenditures  What do we mean by “healthcare expenditures”?

Comparison

Shelby US Hospitals $2,582 $2,363 Physicians $1,627 $1,632 Pharmacy $964 $770 Long-term Care & DME $590 $755 Lab and Radiology $457 -- Dental Care $375 $332 OTC Drugs & Non-durable Supplies

$320 $128

Other Professional Fees $248 $216

Page 20: MEMPHIS HEALTHCARE EXPENDITURES May 11, 2010. Healthcare Expenditures  What do we mean by “healthcare expenditures”?

Hospitals – 36%

Inpatient45%

Outpatient55%

Hospital Expenditures

Page 21: MEMPHIS HEALTHCARE EXPENDITURES May 11, 2010. Healthcare Expenditures  What do we mean by “healthcare expenditures”?

Hospitals – 36%

Inpatient45%

Other Outpa-tient51%

Non-emergent ED4%

Hospital Expenditures

Page 22: MEMPHIS HEALTHCARE EXPENDITURES May 11, 2010. Healthcare Expenditures  What do we mean by “healthcare expenditures”?

Hospitals – 36%

Other Inpatient40%

Potentially Avoidable

5%

Other Outpa-tient51%

Non-emergent ED4%

Hospital Expenditures

Page 23: MEMPHIS HEALTHCARE EXPENDITURES May 11, 2010. Healthcare Expenditures  What do we mean by “healthcare expenditures”?

Physicians – 23%

Shelby County

Nation

Primary Care Physicians

Medical Specialists

57.8 per 100,000 35.3 per 100,000

71.9 per 100,000 45.4 per 100,000

Page 24: MEMPHIS HEALTHCARE EXPENDITURES May 11, 2010. Healthcare Expenditures  What do we mean by “healthcare expenditures”?

Pharmacy – 14%

75% of pharmacy expenditures are for brand drugs, even though 60% of prescriptions are for generic.

Page 25: MEMPHIS HEALTHCARE EXPENDITURES May 11, 2010. Healthcare Expenditures  What do we mean by “healthcare expenditures”?

Pharmacy – 14%

Brand38%

Generic62%

% of Prescriptions

Page 26: MEMPHIS HEALTHCARE EXPENDITURES May 11, 2010. Healthcare Expenditures  What do we mean by “healthcare expenditures”?

Pharmacy – 14%

Brand75%

Generic25%

% of Expenditures