Novation: Inflation rates for hospital services 8%, prescription drugs 5%
Rates for hospital inpatient and outpatient services have inflated by 8 percent in the past 12 months, 2 percent higher than 2008, according to a budget projection report published by Novation.
The report showcases Producer Price Index (PPI) and Consumer Price Index (CPI) projections from the U.S. Bureau of Labor Statistics, and reported a PPI change of 1.1 percent last year for medical-surgical instruments and 1.6 percent in 2008.
In addition, PPI changes for surgical supplies rose 0.6 percent in 2009, after a 2.2 percent rise in 2008.
Accounting for 87 percent of the total population, CPI changes for nursing home services and prescription drugs were recorded at 3.6 percent and 4.4 percent, respectively,in 2009 compared to 3.2 percent and 1.5 percent, respectively, in 2008.
In addition, CPIs for inpatient services rose 2 percent since 2008, from 5.7 percent to 7.7 percent, while outpatient services CPIs climbed by 2.6 percent since 2008, from 5.6 percent to 8.2 percent, according to the report.
In 2009, hospital services CPIs were recorded at almost 8 percent compared to 5.9 percent in 2008.
Between December 2008 and January 2009, it was reported that the U.S. PPI index for irradiation equipment including CT, nuclear, x-ray, and fluoroscopy inflated by 2 percent, after experiencing a 0.7 percent decrease in 2008.
In comparison, PPIs for laboratory equipment and furniture (hospital beds, operating room tables, etc.) increased by 3.4 percent in 2009 compared to a 4.5 percent increase in 2008. As for pharmaceuticals, the PPI index rose by 6 percent, rather than the 7.1 percent increase in 2008.
According to the report, Novation expects the overall projected price changes to increase by 2.9 percent in late 2010 into the first half of 2011. The company reported that the national market price projection for cardiovascular, medical, surgical and imaging products will rise by 0.7 percent, 3.2 percent, 2.2 percent and 0.1 percent, respectively.
According to the report, the budget impact project report supplies healthcare information to assist facilities with the supply-related budgeting process.
The report showcases Producer Price Index (PPI) and Consumer Price Index (CPI) projections from the U.S. Bureau of Labor Statistics, and reported a PPI change of 1.1 percent last year for medical-surgical instruments and 1.6 percent in 2008.
In addition, PPI changes for surgical supplies rose 0.6 percent in 2009, after a 2.2 percent rise in 2008.
Accounting for 87 percent of the total population, CPI changes for nursing home services and prescription drugs were recorded at 3.6 percent and 4.4 percent, respectively,in 2009 compared to 3.2 percent and 1.5 percent, respectively, in 2008.
In addition, CPIs for inpatient services rose 2 percent since 2008, from 5.7 percent to 7.7 percent, while outpatient services CPIs climbed by 2.6 percent since 2008, from 5.6 percent to 8.2 percent, according to the report.
In 2009, hospital services CPIs were recorded at almost 8 percent compared to 5.9 percent in 2008.
Between December 2008 and January 2009, it was reported that the U.S. PPI index for irradiation equipment including CT, nuclear, x-ray, and fluoroscopy inflated by 2 percent, after experiencing a 0.7 percent decrease in 2008.
In comparison, PPIs for laboratory equipment and furniture (hospital beds, operating room tables, etc.) increased by 3.4 percent in 2009 compared to a 4.5 percent increase in 2008. As for pharmaceuticals, the PPI index rose by 6 percent, rather than the 7.1 percent increase in 2008.
According to the report, Novation expects the overall projected price changes to increase by 2.9 percent in late 2010 into the first half of 2011. The company reported that the national market price projection for cardiovascular, medical, surgical and imaging products will rise by 0.7 percent, 3.2 percent, 2.2 percent and 0.1 percent, respectively.
According to the report, the budget impact project report supplies healthcare information to assist facilities with the supply-related budgeting process.