WEEKLY UPDATE: 04/10/25
On Wednesday, April 2, the Connecticut Office of Health Strategy (OHS) released a set of three reports comparing statewide performance on healthcare cost growth, quality, and primary care spending against OHS’s established benchmarks for 2023. The annual reports are published under the Connecticut Healthcare Benchmark Initiative.
According to the OHS reports, while the quality of healthcare has remained stable, total statewide healthcare expenditures grew by 7.8% from 2022 to 2023, exceeding the cost growth benchmark set at 2.9%. The 2023 benchmark was not adjusted for inflation-driven increases in expenses, which for hospitals alone grew by more than $1 billion during this same period. The OHS methodology continues to disregard expenditure increases that result from changes in patient severity.
The OHS reports also cite that primary care investment dropped to 4.5% compared to 4.8% in 2022, falling short of the 6.9% spending target.
Connecticut hospitals and health systems have been willing and active partners since the inception of the cost growth benchmark process in early 2020. Representatives from the healthcare sector have participated in the Stakeholder Advisory Board, the Healthcare Benchmark Initiative Steering Committee, the Healthcare Benchmark Initiative Data Analytics Work Group, and forums and hearings.
At the core of making the benchmarking process work is the ability to share and analyze data so that policy and care delivery changes key to the success of the benchmark can be implemented. Transparent, replicable, and reliable data and analytics are essential.
The Connecticut Hospital Association (CHA) continues to advocate for a transparent data process for accurately accessing performance against the benchmark. Benchmarks must be reasonable and reflect — not ignore — the impact of the financial pressures hospitals are facing. Implementation must be based on sound and accurate data and should focus on the entirety of the healthcare spending landscape, including Medicaid reimbursement that does not keep pace with the rising cost of care.
OHS is holding a Healthcare Benchmarks Initiative Informational Public Hearing on Monday, June 23, to review the findings and answer questions.
Click the links below to access the three reports:
Click here for more information on Connecticut’s healthcare cost growth benchmarking.
