Morristown 2nd best in U.S. in decreasing health costs, study says

MORRISTOWN – Medical costs decreased in the Morris County region by more than 4 percent from 2011 to 2013, according to a new study, which rates the area second best in the United States at keeping price increases down.

The study was conducted by BetterDoctor, a company that lists, profiles and rates more than 95 percent of the doctors in the country. It was based on new data released last week about Medicare and Medicaid procedure costs in 2013. That data was compared to the costs in 2011, when the first cost data was released.

The Medicare data is available because the government must make it public under the provisions of the Affordable Care Act, but the price a hospital charges to Medicare is the same it would bill a private health insurance company or an uninsured person.

Only 12 percent, 32 of 262 surveyed cities, decreased procedure costs from 2011 to 2013, and Morristown was second among them at a 4.38 percent decrease.

For the study, the Morristown region includes not only Morristown Medical Center, but other area hospitals including Denville’s St. Clare’s Hospital, Summit’s Overlook Medical Center, Hackettstown Medical Center, and Newton Medical Center.

BetterDoctor said making the list of decreased costs is a major accomplishment for a city’s hospitals.

“It’s really great for Morristown, but the bigger picture is the rest of the nation is dealing with increases,” said Better Doctor Senior Analyst Divya Raghavan, who worked on the study. “Eighty-eight percent of cities had an increase, some as high as 40 percent. It means Morristown is good at managing costs.”

The only region with a better score was Casper, Wyoming, which saw a decrease of 8.28 percent.

“We’re very proud to be number two in the country for successfully managing health care costs,” Atlantic Health Vice President David Shulkin said. “I think it’s good for the community, and great that the country is looking to New Jersey as an example.”

Shulkin pointed toward an effort started years ago as a reason for Morristown’s success. Atlantic Health started an Accountable Care Organization, which was devoted to managing health care costs while retaining the same high quality of care.

“We’re now seeing those efforts beginning to have an impact,” Shulkin said. “And I believe those efforts will continue in the years to come.”

Shulkin said an example of the organization’s efforts was the way Atlantic Health now deals with patients with chronic illnesses.

“Like with congestive heart disease, 20 percent of patients are readmitted within 30 days of discharge,” Shulkin said. “Now our doctors stay in touch with patients, make sure they don’t have to come in unless it’s necessary. We’ve reduced readmission to below 10 percent.”

The numbers in the study are based on the change in pricing, so just because Morristown has seen a drop, it doesn’t mean procedure costs are low.

Still, hospitals with lower cost changes, or in the case of Morristown a decrease, mean they are better at controlling costs. BetterDoctor said lower cost changes may also mean hospitals have become more efficient while providing the same care.

“Hospitals are continually looking at ways to improve,” St. Clare’s spokesperson Stephanie Galloway said. “Which can result in reduced costs and improve the health of the community.”

The top five in rising health costs all came from Ohio and Massachusetts, with Canton, Ohio topping the list at a 39.29 percent increase from 2011 to 2013.

Raghavan said the U.S. spends the most on healthcare per person in the world, yet people are left in the dark on how to combat rising costs.

“It’s hard to advocate for yourself and shop around when health care prices are not transparent,” Raghavan said. “People are hungry for information. Health care costs are the only commodity where you don’t know how much it costs until months later. Can you imagine if you had to buy groceries like that?”

Raghavan said the best thing people can do to protect themselves is have health insurance and pick an appropriate care plan. She also said people shouldn’t be afraid to “shop around” for doctors covered within insurance plans and to keep records of bills to watch out for mistakes.

“Doctors make mistakes too, Raghavan said. “But it’s up to you to pay attention to your bills and look out for them.”

See the full survey at https://betterdoctor.com/health/cities-where-medical-costs-are-rising-the-fastest/.

Staff Writer Michael Izzo: 973-428-6636; mizzo@GannettNJ.com