News and Commentary

Hospital costs lead way in health care expenditures













The share of the gross domestic product attributed to health care increased slightly more than overall GDP growth from 1999 to 2000 — the first time that's happened in nine years, according to the Centers for Medicare and Medicaid Services. "Recent reports of a slowing economy and continuing health inflation suggest further increases in the near future," CMS's National Health Expenditures report says.

Health spending in 2000 rose 6.9 percent, up from 5.7 percent in 1999. That's the biggest increase since 1988.

SOURCE: CENTERS FOR MEDICARE AND MEDICAID SERVICES, OFFICE OF THE ACTUARY, NATIONAL HEALTH STATISTICS GROUP

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