Publication by the Committee on the Costs of Medical Care

Abstract

HomeRadiologyVol. 16, No. 3 PreviousNext EditorialPublication by the Committee on the Costs of Medical CarePublished Online:Mar 1 1931https://doi.org/10.1148/16.3.388MoreSectionsPDF ToolsImage ViewerAdd to favoritesCiteTrack CitationsPermissionsReprints ShareShare onFacebookTwitterLinked In AbstractPublication No. 7 of the valuable studies being issued by the Committee on the Costs of Medical Care is entitled “Capital Investment in Hospitals,” and is written by C. Rufus Rorem, Ph.D., C.P.A., of the Research Staff. Under the sub-title, “The Place of ‘Fixed Charges’ in Hospital Financing and Costs,” is the statement that this pamphlet is “a digest from the book, ‘The Public's Investment in Hospitals,’ published by the University of Chicago Press.”The summary and conclusions are as follows: 1. Capital investment in the 7,000 hospitals in the United States exceeds three billion dollars, a greater investment than that in many important manufacturing industries.2. The average investment-per-hospital is $425,000, an amount usually too great to be provided by individuals or small groups.3. Hospitalization requires a capital investment of approximately $5,000 for every patient under treatment for acute diseases or conditions.4. Ninety-one per cent of the capital investment has been provided on a non-profit basis in about equal proportions by governments and non-profit associations, respectively.5. Only 9 per cent of the capital has been provided on a business basis—through ‘proprietary’ hospitals—with the expectation of earnings or repayment.6. Most hospitals, 4,538, are for ‘general’ medical and surgical care. They represent 41 per cent of the bed capacity, 60 per cent of the capital investment, and an average investment-per-bed of $5,000.7. Two-thirds of the capital invested in general and special hospitals is controlled by independent associations and by churches and religious orders.8. Governmental hospitals represent 95 per cent of the capital devoted to the care of persons afflicted with mental disease and 75 per cent of that invested in tuberculosis hospitals.9. The state governments have provided most of the 393,737 beds for nervous and mental cases. This capacity exceeds the total in all hospitals for general care, but is concentrated in 553 institutions.10. Investment-per-capita in ‘general and special’ hospitals (other than Federal) is highest, $25, in the North and Middle Atlantic states, and lowest, $6, in the South and South Atlantic states.11. Existing endowment capital, 437 millions (mainly concentrated in the few older hospitals in metropolitan areas), if redistributed among all hospitals in the United States would provide but $0.08 per patient-day toward operating costs.12. The annual capital expenditures approximate $200,000,000. Much of this total is directed towards replacing and Improving hospital facilities rather than expanding bed capacity.13. ‘Fixed charges’ (interest and depreciation on capital investment) are costs of hospital service, although usually met by the general public rather than from patients fees. They may range from $0.50 to $5 per patient-day, varying with the total investment and the rate of occupancy.Article HistoryPublished in print: Mar 1931 FiguresReferencesRelatedDetailsRecommended Articles RSNA Education Exhibits RSNA Case Collection Vol. 16, No. 3 Metrics Altmetric Score PDF download