New York Healthcare: Spending vs. Outcomes Breakdown
New York spends an astonishing $344 billion annually on healthcare — that’s more than the entire GDP of Portugal (around $300 billion).
And yet, we rank just #31 in health outcomes nationwide, according to the Commonwealth Fund.
Let that sink in.
Where’s the Money Going?
According to the Community Service Society (CSS) report,
“Hospital prices appear to be a significant driver of the rapid increase in New York’s healthcare spending.”
Nearly 40% of all healthcare dollars in New York are consumed by hospital care. But what do employers, unions, and patients actually get in return?
Site-of-care inflation – where identical procedures cost dramatically more in hospitals vs. physician offices or surgery centers
Hospital consolidation – fewer choices, less competition, and higher prices
Opaque quality data – little insight into outcomes, even as prices rise
It’s Not That We’re Not Spending Enough…
It’s that we’re paying the wrong people, for the wrong things, in the wrong way.
This is Post 1 of 10 in our ongoing series breaking down New York’s healthcare dysfunction — and more importantly, what employers, unions, and providers can do about it.
Actionable Takeaways:
Employers and unions have more power than they think — and fiduciary responsibility to act
Direct contracting with independent physicians and ASCs can significantly reduce costs while improving access
Transparency isn’t a buzzword — it’s a lever for real value
