AJMC February 14, 2025
Key Takeaways
- Service utilization is the primary driver of healthcare spending variation, accounting for 64.8% of differences across counties.
- Price and intensity of services, disease prevalence, and population age also contribute to spending variation, with respective contributions of 24.1%, 7.0%, and 4.1%.
- Spending patterns vary by state, insurance type, and care setting, with state-level differences influenced by population demographics and service costs.
- The study’s limitations include data modeling uncertainties and unaccounted local price variations, but it underscores the need for informed resource allocation.
Service utilization is the biggest factor behind spending variation, with prices, disease prevalence, and demographics playing smaller roles.
Health care spending varies widely across US counties, but what’s driving the differences? A new study analyzing...
Today's Sponsors
Today's Sponsor