March 27, 2024
Imaging’s Share of Aggregate Healthcare Spending has Declined Since 2010
Reston, VA (March 27, 2024) – Medical imaging has previously been identified as a potential driver of U.S. healthcare spending growth. A study by the Harvey L. Neiman Health Policy Institute evaluated the degree to which imaging has contributed to aggregate medical cost growth. This Health Affairs Scholar study found that spending on imaging increased 35.9% between 2010 and 2021, but as spending on other healthcare services increased even more, imaging’s share of total health care spending fell from 10.5% to 8.9%.
To identify the relative cost drivers, the researchers used data from the Merative MarketScan 2010-2021 Commercial Database, one of the largest proprietary U.S. claims databases used for healthcare research. The data covered about 34 million patients per year.
“Between 2010 and 2021, healthcare spending increased 60.8%, but this growth differed substantially by type of service”, said Michal Horný, PhD, Assistant Professor at Emory University School of Medicine. “We found that spending growth was 35.9% for imaging while it was 63.7% for all other healthcare services. Hence, while imaging spending has increased, the growth in non-imaging services has been substantially higher. Therefore, imaging has become a smaller piece of the pie.”
The study found that there were several contributors to imaging spending growth. These include general price inflation, increased use of imaging, shifts in the types of imaging used, demographic shifts of the insured population, differences in where patients receive imaging, and insurer provider networks.
“General price inflation accounted for nearly two-thirds of the 35.9% increase in spending for imaging”, said Eric Christensen, Ph.D., Director of Economics and Health Services Research at the Neiman Health Policy Institute. “The next largest contributor to increased imaging spending was increased utilization, which accounted for another one-fifth of imaging spending growth. The remaining growth resulted from shifts to more advanced imaging modalities and demographic shifts, each about one-tenth of the total. Conversely, shifts to lower-cost places of service and more in-network imaging offset some spending increases.”
Law and policy changes since 2010 have impacted imaging spending. For example, the Affordable Care Act reduced out-of-pocket costs for high-value preventive screenings, including certain cancer screenings, which has increased volume. Other efforts, such as Choosing Wisely, were designed to reduce the use of unnecessary or low-value imaging.
“While our findings cannot speak to the appropriateness of imaging, they do highlight important trends. We found that the percentage of patients undergoing imaging declined from 46.2% in 2010 to 40.3% in 2021, while those who had imaging underwent more imaging exams,” said coauthor Richard Duszak, MD, Professor and Chair of Radiology at the University of Mississippi Medical Center. “What needs further study is whether this is related to more judicious use of imaging, barriers to imaging related to burdensome pre-authorization, and/or other factors.”
Given that imaging volumes are driven by ordering providers and not the radiologists who interpret them, cross-specialty efforts, such as Choosing Wisely, to control aggregate imaging growth should focus on optimizing appropriateness.
To obtain a copy of the study or to arrange an interview with a Neiman Institute spokesperson, contact Nichole Gonzalez at ngay@neimanhpi.org.
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About the Harvey L. Neiman Health Policy Institute
The Harvey L. Neiman Health Policy Institute is one of the nation’s leading medical imaging socioeconomic research organizations. The Neiman Institute studies the role and value of radiology and radiologists in evolving health care delivery and payment systems and the impact of medical imaging on the cost, quality, safety and efficiency of health care. Visit us at www.neimanhpi.org and follow us on Twitter, LinkedIn and Facebook.