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US hospital and GP services "drive spending"

This article was originally published in Clinica

Executive Summary

US healthcare spending grew by 7.9% in 2004, to $1.9 trillion, the lowest increase since 2000, according to an annual report from the Centers for Medicare & Medicaid Services (CMS). Hospital and physician services accounted for 62% of the overall increase in healthcare spending. Both sectors posted the biggest gain in spending since 1991 as a result of new treatments, rising prices and a greater use of medical services. Spending on hospital care alone rose 8.6% to $570.8bn, while spending on doctors grew by 9% to $399.9bn. However, a slowdown in the growth of prescription drug sales, due to the greater use of generics, helped to moderate the overall growth rate in healthcare spending.

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