The 5% · Sweden · Hospital prices

Why Sweden hospital prices are lower

Sweden sets one hospital price — a DRG, a tariff, or a budget. The hospital takes it. It cannot charge each plan a different secret multiple. In the US the must-have hospital extracts 2–3× Medicare from job plans that cannot walk. The insurer passes that through. It does not set it.

County global budgets

How it works

Regions (counties) run the hospitals on global budgets. Specialists are often salaried. Volume is planned. There is no employer picking a secret network price for the tower.

Why it holds

A budget is a hard stop. The hospital cannot bill its way to a US commercial night. Sweden’s specialist pay is about 31¢ on the US dollar — the lowest on these tabs — and the hospital index is still about 40¢. Price, not skipped sepsis.

The invoices

SKUUnited StatesSweden
Hospital unit vs US commercialmodeled$1.0040¢
Specialist pay vs USsourced$316,000$98,452

See iFHP, RAND hospitals, Papanicolas.

Also: Why Sweden brand drugs · Who bargains with whom · Bargaining chips · The rulebook · Problems / solutions · National debt · Hospital voices · Back to The 5%