Rising Provider Costs Linked
To Increases in Healthcare Costs And Insurance Premiums
May 3, 2002- PricewaterhouseCoopers (PwC) has released
a report that identifies the key drivers of rising healthcare
costs and health insurance premiums. The report, "The
Factors Fueling Rising Healthcare Costs," was commissioned
by the American Association of Health Plans (AAHP).
According to PwC, rising provider expenses accounted for
about 18 percent (about $12 billion) of the total rise in
costs. The report notes that provider expenses grew about
2.5 percent between 2001 and 2002, primarily because hospitals
successfully negotiated higher reimbursement rates.
General inflation, the report notes, also grew at about 2.5
percent and represented another 18 percent of the total rise
in costs. Medical advances (drugs, devices, testing) accounted
for 22 percent ($15 billion) of the overall increase.
Information:
Christiane Mitchell, Senior Legislative Affairs Manager
AAMC Government Relations
cmitchell@aamc.org
(202) 828-0526
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