Practice Economics

Spending on physicians rising faster than health expenditures overall


 

References

Spending on physicians rose by 2.4% per year from 2003 to 2013 – the largest increase among the major components of national health expenditures, according to the Agency for Healthcare Research and Quality (AHRQ).

Per capita spending for the physician and clinical sector went from $1,432 in 2003 to $1,775 in 2013 when adjusted to 2009 dollars, for a total increase of almost 24%. Total per capita health expenditures were $7,284 in 2003 and $8,555 in 2013, which represents an annual increase of 1.75%, the AHRQ reported.

The largest portion of national health expenditures, hospital spending, increased from $2,264 (in 2009 dollars) per capita in 2003 to $2,700 in 2013 – just under 2% per year. Physician and clinical costs were the second-largest component of health expenditures, followed by prescription drugs, health insurance administration and profit, and nursing care facilities in 2013, the AHRQ noted.

Overall per capita spending on prescription drugs was up just 0.5% from 2003 to 2013, giving it the smallest increase among the five sectors. Spending on nursing home facilities rose slightly more, 0.7% a year, while the cost of insurance company administration and profit increased by 1.4% a year over that time, according to data from the Centers for Medicare & Medicaid Services.

rfranki@frontlinemedcom.com

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