Altarum reports first year-over-year fall in hospital prices since at least 1992
Hospital prices fell 0.1% in January compared to a year ago, the first such decline in at least 23 years, according to the latest from Altarum Institute's Center for Sustainable Health Spending. The Health Care Price Index was 1.2% higher than a year ago, approaching the decade-plus low of 1% registered in August 2013, the center said. “The big news is the first ever negative hospital price growth (-0.1%), along with the historically low hospital price growth for Medicare (-2.9%) and ‘other’ payers (1.6%),” the center said. “In contrast, price growth for prescription drugs, at 5.6%, though down from 6.4% in December, is still the highest since May 2002.” The center estimates that national health spending grew 5% in calendar year 2014, and 5.7% in January compared with a year ago. The health sector added 23,800 new jobs in February, including 8,700 in hospitals, the center said.