Little Rock Healthcare System Examined
A report issued recently by the Center for Studying Health System Change of Washington, D.C. calls Little Rock "a self-contained healthcare system" due to its large number of hospitals, beds, and physicians. It also says the size and clout of the city’s medical industry have allowed it to resist efforts to cut costs. The study concluded that medical care is so important to the area’s economy, many businesses view hospitals as valued customers and have been reluctant to push too hard on controlling costs.

The report notes that Little Rock surpasses the national rate for hospital beds per 1,000 population by 93%; is 47% above the national average for physician specialists per 100,000 population; and 11% higher than the U.S. average for primary care physicians per 100,000 people. It shows that Pulaski County’s hospitals, combined with Arkansas Blue Cross and Blue Shield, account for 11% of the county’s total work force.

Researchers found that employers have relatively little influence over the area’s health system, since most are small and are less likely to offer health insurance coverage. Those that offer coverage tend to respond to insurance cost increases by cutting back on benefits or dropping them altogether. However, the report’s authors see this trend as a catalyst for future cost cutting efforts in the area as more national healthcare companies enter the market, increasing competition. That has led existing insurers to hold down their rates by reducing payments to hospitals and physicians.

Little Rock was one of 12 U.S. cities chosen at random for the study funded by the Robert Wood Johnson Foundation. Research was based on interviews with about 60 Arkansas healthcare professionals.

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AAHT Calendar of Events

August 27 (Internet)
"Legal Responsibilities of Healthcare Organization Trustees"

September 19-21, Nashville, Tennessee
Southeast Annual Joint Leadership Conference

October 12-15, Little Rock
Arkansas Hospital Association Annual Meeting