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Volume 25
In this Issue
June 2004
INCREASED HOSPITAL CHARGES FOR COMMON ADMISSIONS
RACIAL DISPARITIES & DEATHS FROM HEART DISEASE IN THE UNITED STATES
WHO’S GOING INTO MEDICINE?
VENTURE CAPITAL FUNDING
THE NEW ECONOMY
THE UNINSURED
FACTOIDS
WHO KNEW?
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INCREASED HOSPITAL CHARGES FOR COMMON ADMISSIONS
Rapidly rising hospital charges have recently placed hospitals in the spotlight. Charges for hospital care have risen sharply, helping fuel overall healthcare inflation. Price increases reflect higher labor and capital costs. Median charges adjusted to current dollars for common hospital stays are shown below.

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RACIAL DISPARITIES & DEATHS FROM HEART DISEASE IN THE UNITED STATES
Heart disease accounted for approximately 29% of deaths in this country in 2001; of those 16.6% occurred among persons less than 65 years of age. Premature deaths (defined as less than 65 years) from heart disease is still much higher among ethnic groups than among whites as shown below:

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WHO’S GOING INTO MEDICINE?

More women are selecting medicine as a career. However, some medical specialties are more appealing to women than others.


The number of graduating seniors in the United States choosing family medicine has declined nearly 50% since 1997, with less than 10% of US medical graduates choosing family medicine in 2004.


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VENTURE CAPITAL FUNDING
Venture capital firms are once again beginning to invest money. Venture capital pumped $5.1 billion into start ups in the first quarter of 2004 according to a recent report. It was the first time quarterly investing topped $5 billion in two years.
Biotech and other life science ventures continue to draw more money from VC’s the VentureOne Report shows. VC’s poured nearly $1.5 billion into biotech ventures in the first quarter – a quarterly record. The share of overall VC money going to biotech, nearly 29%, also was a quarterly record.

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THE NEW ECONOMY
The four countries that appear to be among the world’s fastest growing economies are Brazil, Russia, India and China. The economies of those four countries are estimated to grow from one-seventh of the combined output of the world’s six biggest industrialized nations to 50% by 2025.
However, these four countries suffer from notable levels of costly and debilitating infectious diseases that may have an impact on their economy. India has the world’s highest incidence of Tuberculosis, and the number of new cases of TB in Russia is surging. The following graphs are a benchmark of the disease statistics (and birth and life span data) against those of Mexico for comparison purposes.

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THE UNINSURED
Medical costs for uninsured Americans will total nearly $125 billion this year, and about one-third, or $40.7 billion, will be uncompensated. The Kaiser Commission on Medicaid and the Uninsured reports that federal, state and local government will fund about 85% of the uncompensated care – primarily in the form of disproportionate – share payments to hospitals. Uninsured rates vary by states. Percentages indicate likelihood of being uninsured.

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FACTOIDS

  • Preliminary results of a study of nearly 1,400 members of Aetna Health fund show that the consumer-directed aspects of the plan appear to be encouraging more active engagement in health care decision making. Notably, medical costs for members stayed relatively flat, rising only 1.5%, while utilization of preventive care increased 16% more than in a similar population.

  • Stroke care appears to be a very large expenditure for the U.S. Direct healthcare expenses for treatment of stroke patients rose to $31 billion in 2003. The typical stroke patient will generate $15,000 - $20,000 in healthcare expenses within 90 days of his/her stroke.

  • Heart related mortality fell 3% from 2001 to 2002, continuing a downward trend since 1950. Cancer related mortality fell 1%, continuing a downward trend since 1990.

  • Overall male life expectancy at birth was 74.7 years and female life expectancy 79.9 years in 2002. The overall female – male edge declined from 5.4 years in 2001 to 5.2 years in 2002.

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WHO KNEW?

With over twenty-five years of clinical and business experience, we have worked with physician practices, hospitals, health systems, academic medical centers and healthcare businesses in 48 states. With focus on strategy, new business development and operational performance improvement, we specialize in integrating the business and clinical aspects of healthcare. Some of our current projects include:



  1. Strategic planning with senior management of a large urban multi-hospital system to bring about an increased service portfolio for their products and service lines.

  2. Development of a new heart and vascular center for a multi-hospital system.

  3. A joint venture between a university and a community hospital for surgically unsupported cardiac intervention.

  4. Practice assessment and redesign of a large clinical practice focusing on a new management and governance structure.

  5. Temporary management of a new heart and vascular center.

  6. Quality assessment of a stand alone cath lab.

  7. Market analysis and feasibility study for new imaging services for a JV between a cardiology practice and their hospital.

  8. Innovative redesign of compensation for an academic facility practice plan.

  9. Formalization of the rationale and justification (financially, operationally and strategically) for a close working alignment between several independent physician practices and a large hospital.

  10. Serving as coach and mentor to numerous clinical practices and hospital executives.

  11. Facilitation of board retreats.

Our team of seasoned health care professionals and executives provide a national perspective.
Our advantage… 



  1. We know the business as well as the practice of medicine.

  2. In business since 1980.

  3. Seasoned team with national vantage point.

  4. Specialized expertise in cardiology, cardiovascular surgery and vascular services.

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To find out more about The Riner Group, please visit our website or contact us directly via confidential voicemail or fax.

To request specific information regarding the Riner Group, please email us at requestinfo@rinergroup.com

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