Rising Costs of Hospitals:

Hospitals throughout the United States can save $50 billion annually simply by converting to a similar system such as the one in Canada where there is less paperwork and only one form of health insurance claim for all. If all patients were to carry basic coverage, then hospitals can rely on a consistent form of income without losing finances in treating the uninsured.

Those who are uninsured tend to rely on hospital emergency rooms for primary care. These emergency services are extremely expensive and such inappropriate use contributes to the rising health care costs in America. This is especially true when the cost of care cannot be recovered.

Hospitals are forced, by federal law, to accept patients who cannot pay until their condition is stabilized regardless of insurance status. Subsequently, this encourages uninsured individuals to use emergency rooms for primary care.

Private insurance companies took steps to set fixed rates so that hospital expenses for publicly insured patients would not be passed on to them. Whenever the prices of goods and services in general increase the cost of health care and hospitalization can be expected to rise.

Rising costs in hospitals are also due to the aging population creating a greater and growing demand for the elderly who need health care. This increases hospital expenses and doctor fees as well as other health care providers. 

The increasing pricing for health insurance correlates directly to these rising costs in hospitals and health care. As the number of prescriptions given by doctors to patients has created a greater shift and use in higher priced drugs.

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