Hospital Overhead Costs are Piling On to the Cost of Health Care

Here is an interesting story about how one surgery center in Oklahoma City is turning healthcare upside down.

How can the same procedure from the same surgeon cost $27,000 less at this surgery center rather than the local hospital? The answer:

1. The surgery center has much lower overhead costs than the hospital.

“In 2010, the top 18 administrative employees at Integris Health received an average of $413,000 in compensation, according to the not-for-profits’ 990 tax form. There are no administrative employees at the Surgery Center.”

2. The surgery center offers market driven, transparent pricing.

Perhaps a little competition is just what the doctor ordered to help solve the U.S. health care crisis.