Healthcare Costs are Going Up
Healthcare costs are rising. This is not a repeat from 1960, 1980, 1990, 2000 or just about every year in between.
The chart below is the Census Bureau’s Healthcare CPI over the last 25 years for Physicians, Hospitals and Prescription Drugs. The baseline is 1982.
CPI Medical Care Prices 1980-2007
Before seeing this chart, I’d have thought that prescription drugs were the source of the dramatic rise in healthcare costs. I also kinda blamed doctor salaries. But clearly of the three, hospital costs have risen far more than the other two.
For nearly the last two decades, the United States has directed approximately 4.5% of all healthcare spending towards building hospitals and other “facilities.” This is a dramatic increase from earlier decades.
Medical Facility Construction Spending 1965-2005
|% of Healthcare Spending|
Of course, just because the cost of seeing a regular old doctor hasn’t risen as much as hospitals or taking drugs, I suspect this is balanced out by the fact that the per capita number of active physicians has doubled in the last forty years.
Physicians Rate per 100,000 population: 1950- 2006
I’m just saying…..