From Dr Kuljit Singh
The medical trend rate (MTR) measures how quickly healthcare costs rise over time. A key determining factor behind this rise is the increase in utilisation.
Simply put, the increase in utilisation means more people are seeking healthcare services, at a more frequent rate, and often for higher-intensity treatments.
In reality, the real pressure point is not medical inflation itself but the sharp rise in utilisation.
As utilisation increases, it causes a ripple effect. Patients may face higher out-of-pocket bills, insurers adjust premiums, and employers plan their benefits budgets accordingly.
Hospitals and policymakers also use the MTR to gauge the sustainability of care.
Still, many have asked: isn’t there something private hospitals can do to contain costs?
Providing quality healthcare in the face of rising expenses is challenging. Even public hospitals struggle with escalating costs, and private hospitals are not immune.
A recent analysis by a bank’s…