The study's lead author said slow healthcare spending growth "might not be so great for hospitals and health systems."
The Affordable Care Act (ACA) slowed healthcare spending growth over the past decade, which has been a boon for patients but not for hospitals, according to a study published in Health Affairs Monday afternoon.
The average annual national health spending grew by 4.3% between 2010 to 2018, according to the study, less than the 6.9% growth rate between 2000 to 2009. Meanwhile, spending grew by 3.6% on a per capita basis between 2010 to 2018.
The study also estimates that the cumulative increases in Medicare prices between 2010 to 2018 would have been significantly higher had the ACA not been passed, if all other factors held equal.
The overall Medicare price index grew by 14.2% between 2010 to 2018, while the counterfactual without any ACA reductions grew at 19.4% during the same period.
Related: Medicare, Medicaid Enrollment Growing Faster Than Private Coverage
While the cost achievements of the ACA benefited patients, it did not carry the same weight for provider organizations, according to the study's lead author, Melinda J. B. Buntin, Ph.D., Mike Curb Professor and chair of the Department of Health Policy at Vanderbilt University School of Medicine.
Buntin told HealthLeaders that hospitals achieving low cost growth year-over-year is not "unique" as it fits into a larger nationwide trend, a finding that she said may be "sobering news" for provider organizations.
"I would say, overall, the slow healthcare spending growth that we've seen over the past decade has been great for the country, patients, and taxpayers, but it might not be so great for hospitals and health systems," Buntin said.
Additionally, Buntin said that hospitals have contributed in substantial way to the slower spending growth over the past decade due to the lower use of inpatient care on a per capita basis.
"Some of this has been masked from the hospital perspective because we've got an aging population, in particular we've got an aging baby boomer generation, but this is a trend that likely to continue and could ultimately lower demand for inpatient care," Buntin said.
Related: Rising Prices Lead to All-Time High Healthcare Spending
Forward looking, Buntin said the healthcare system might "double down" on payment reforms like physician-led ACOs and bundled payments for certain conditions.
However, she also said that if those approaches do not hold down costs, the industry's focus could return to possibly slashing reimbursement rates.
The study was released the same day the Supreme Court agreed hear Texas v. U.S., the lawsuit challenging the constitutionality of the ACA.
The court is expected to hear the case during its fall term and return a decision by June 2021.
Related: Supreme Court to Hear Challenge to ACA
Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.