The Impact of Gasoline Costs on the Healthcare Industry

By | June 9, 2016

motorcycleThe higher the cost of gasoline, the higher the healthcare costs for the treatment of injuries caused by motorcycle crashes. In an article published ahead of print in Medical Care this week, He Zhu and colleagues discuss the association between gas prices in the United States, hospital costs, and utilization for both motorcycle and non-motorcycle related injuries.

Remember the high gas prices in 2008? I remember hearing radio and television commercials by motorcycle retailers, emphasizing how motorcycles get better mileage and how much money their riders can save on gas. This NPR interview from 2008 covered the surge in motorcycle/scooter purchases, as well as precautions for first-time motorcycle riders. The more people motivated to ride motorcycles, the more people needing treatment for motorcycle-related injuries.

Zhu and colleagues found that as gas prices increased to $3.20 per gallon in 2008, the number of hospitalizations for non-motorcycle motor vehicle crashes (MVCs) declined — from 168,296 to 149,777 between 2002 and 2008. Simultaneously, the occurrence of hospitalizations from motorcycle MVCs increased from 23,059 to 35,715 between 2002 and 2008. The authors’ analysis suggests that gas prices had a considerable impact on cost and hospital utilization for both non-motorcycle and motorcycle MVCs. Consequently, while higher gas prices may lead to lower healthcare costs and fewer hospitalizations associated with non-motorcycle MVCs, this is offset by the increase in motorcycle MVCs.

Zhu and colleagues recommend an increased gas tax as a potential strategy to reduce the number of MVCs. However, the increased gas tax would need to be combined with a strategy to improve motorcycle safety. A number of factors affect motorcycle safety, but the most widely used method is helmet laws.

Currently, 19 states, the Northern Mariana Island, the U.S. Virgin Island, the District of Columbia, and Puerto Rico have universal helmet laws (another 28 states and Guam require helmets for specific riders). The 2014 Motorcyclist Traffic Fatalities by State Report shows how universal helmet laws reduce motorcycle-related injuries. Thus, helmet laws may be another factor to consider when evaluating how motorcycle usage affects healthcare costs and utilization.

A 2012 study, Costs Associated with Helmet Use in Motorcycle Crashes: The Cost of Not Wearing a Helmet, found that healthcare costs and utilization are significantly different for helmeted vs. unhelmeted riders. The mean total hospital charge for injured motorcycle riders wearing helmets was $4184.26, compared with $7,383.31 for those without helmets. Patients without helmets also required more procedures, had a longer length of stay, and spent more days on a ventilator.

The higher the cost of gas, the more motorcycles on the road, and the higher the likelihood of motorcycle-related injuries and hospitalizations. Do places without universal helmet laws have higher healthcare costs and utilization than those with universal helmet laws? Probably. In a study from 1983, Hartunian et al. compared costs between states with enforced helmet laws to those states that had repealed such laws, and found differential costs amounting to more than $412.9 million (in 2015 dollars). 

Some have advocated for a Federally mandated universal helmet law. Perhaps that time may come. In the meantime, if you ride a motorcycle, don’t forget your helmet!

Alexa Ortiz

Alexa Ortiz

Health IT Scientist at RTI International
Alexa Ortiz graduated from the University of North Carolina at Charlotte in 2009 with a Bachelor of Science in Nursing. Before receiving her graduate degree she was a practicing nurse for five years and has clinical experience in the field of both Cardiology and Neurology. In 2014 she received a Master of Science in Nursing specializing in nursing informatics from Duke University. Presently, she works as a Health IT Scientist at RTI International in the Center for Digital Health and Clinical Informatics. Despite no longer working in a clinical setting, she continues to maintain an active nurse license in the state of North Carolina. Her primary areas of research at RTI International focus on the clinical implementation of health information technology and the evaluation of consumer wearable devices.
Alexa Ortiz

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About Alexa Ortiz

Alexa Ortiz graduated from the University of North Carolina at Charlotte in 2009 with a Bachelor of Science in Nursing. Before receiving her graduate degree she was a practicing nurse for five years and has clinical experience in the field of both Cardiology and Neurology. In 2014 she received a Master of Science in Nursing specializing in nursing informatics from Duke University. Presently, she works as a Health IT Scientist at RTI International in the Center for Digital Health and Clinical Informatics. Despite no longer working in a clinical setting, she continues to maintain an active nurse license in the state of North Carolina. Her primary areas of research at RTI International focus on the clinical implementation of health information technology and the evaluation of consumer wearable devices.