BUSINESSWEEK ONLINE : JANUARY 8, 2001 ISSUE
ECONOMIC TRENDS What's Boosting Health Costs Bills for hospital services soar Mention the rising cost of medical care, and many people think of prescription drugs. Such drugs, however, account for only 10% of health-care outlays. The big jump in costs this year is not in medical commodities, which include drugs, but in medical services, where consumer prices have risen 4.7% in the past 12 months. Although medical services include visits to doctors and dentists, it is charges for hospital services--running 6.8% over last year--that are really driving the surge in prices. The Labor Dept. reports that charges for hospital procedures to both consumers and health insurers have risen across the board. While nursing shortages and greater use of expensive medical and information technology explain part of the rise, it may also reflect the large number of hospital mergers that have reduced competition in many localities. By GENE KORETZ With James M. Mehring in New York _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _					RELATED ITEMS What's Boosting Health Costs CHART: Healthy Hikes for Health Services INTERACT E-Mail to Business Week Online

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