Ever held off on going to the hospital due to costs? You’re not alone! Unfortunately, so few people know exactly why a hospital visit can cost an arm and a leg. While most of us think the cost has to do with paying those highly skilled doctors and nurses, the truth is actually quite different. In reality, administrative costs make up the major chunk of healthcare spending in hospitals. In fact, it makes up about 25 percent of total hospital spending. It accounts for hundreds of billions in healthcare spending annually.

These administrative costs are highest in for-profit hospitals, followed by non- profit hospitals. The most affordable hospitals are teaching hospitals and public hospitals.

In America, administrative costs end up totaling around $1.485 trillion dollars annually! Next time you get a costly bill from your local hospital, you’ll know exactly why the costs are so high. Of course, even high costs are no reason to avoid a hospital trip. Thanks to insurance and plenty of non-profit groups, you can help to curb these administrative costs and get the care you deserve. While hospitals can be costly, they can also be life-saving!