3. Assets

Four out of ten households (spending units) headed by people over age 65 had less than $200 liquid assets. These households include "one person families." The Federal Reserve Board study in 1959 included one person households and included estimated value of all bank deposits, savings bonds, etc.: 33 percent had $2,000 or more, 31 percent had $500 to $2,000, 17 percent had $1 to $500, 29 percent had no liquid assets.

Figuring another way, one-third had less than $100 cash assets and one-half have less than $1,000 liquid assets.

Liquid assets in relation to income.-Among households (spending units) with head 65 and over:

When income was less than $3,000 (70 percent of the total): 47 percent had less than $200 in liquid assets; 44 percent had assets of $500 or more.

When income was $3,000 to $5,000: 21 percent had less than $200 in liquid assets; 70 percent had assets of $500 or more.

Marketable securities: Only 11 percent of the aged spending units owned corporate stocks and bonds or marketable Government securities in early 1957 when this question was last studied by the Federal Reserve Board. Virtually all of these stockholders were in the group that already had over $2,000 in other liquid assets as defined above.

B. WHAT HAS HAPPENED TO HOSPITAL COSTS?

The average length of stay for persons of all ages has decreased but the average cost per day has increased, as well as the average cost per hospital stay.

In 1946 the average length of stay was 9 days, average cost per day $8 and the cost per stay was $85; in 1960 the length of stay was 71⁄2 days, cost per day $35, cost per stay $245. Dr. Howard Rusk reported that by August 1963 the cost per stay had risen to $279.

The average cost per patient per day in the American hospital has more than doubled in the last 10 years. In 1945 it was about $10 per day; 1950 it was roughly $15 per day; 1960 about $32 and has actually gone up to $50 per day in certain areas and is moving up to the $60 a day mark in other places.

Hospital costs have increased at a rate faster than any other item in the cost of living, except hospital insurance. While overall medical care prices increased by 17 percent from 1958 to 1963 and hospital daily service charges increased nearly 40 percent.

The United Hospital Foundation Study in New York has told its member hospitals that patients are likely to pay 37 percent more per day in the next 5 years. This study stated that patient care costs have jumped from $15.53 per day in 1947 to $40.92 in 1962 and probably to $55.35 by 1967 in the New York area.

The following are the average costs per patient per day by State according to the American Hospital Association:

Hospital insurance costs have risen faster than any other item in the cost of living. In the last 14 years, the Department of Labor reports that the average of all consumer items has increased only about 18 points while the cost of hospital insurance has increased 82 points. Physicians fees have increased only about 25 points.