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Metro Areas with High Healthcare Prices Have Lower Utilization | Rev Cycle Intelligence

Metropolitan areas with higher healthcare prices had lower utilization of medical services and vice versa, the Health Care Cost Institute (HCCI) recently reported its latest analysis for the Health Marketplace Index series.

Funded by the Robert Wood Johnson Foundation, the Healthy Marketplace Index project aims to understand the drivers of market-level variation in healthcare spending. The first report released as part of the project shed light on healthcare price variation across 112 metropolitan areas.

Now, HCCI is building on its pricing research by also reviewing how price and utilization are related in the same metropolitan areas. Using more than 1.8 billion commercial healthcare claims from 2012 to 2016, the non-profit research institute found significant variation in the commercial prices and utilization of the same medical services.

Researchers not only found varying spending trends and utilization drivers across metropolitan areas, but also different trends and drivers within the same region.

“Our findings underscore the need to dive into the data and understand the local factors explaining healthcare costs, as there is not one overall narrative, but many individual ones from metro to metro,” Bill Johnson, PhD, lead author and Senior Researcher at HCCI, stated in an official press release.

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Metro Areas with High Healthcare Prices Have Lower Utilization.