8 key observations on healthcare spending over the next 5 years

Laura Dyrda -

The National Health Expenditure Projections 2012-2022 show healthcare spending growth over the next several years, according to a Yahoo News report.

Here are key observations on healthcare spending from the report:

1. Spending on hospital care is expected to reach $973 million this year.

2. Hospital care spending will be a trillion-dollar subsidy in the United States by 2015.

3. If current spending trends continue, healthcare spending will be 19.3 percent of the gross domestic product in 2023.

4. Healthcare spending only rose 3.5 percent during the third quarter of 2014 over the same period last year, well below the 10 percent projections. The projected growth took into consideration 10 million new people gaining health insurance this past year.

5. Despite the spending slow-down, many for-profit companies like HCA and Universal Health Services beat expectations for the third quarter.

6. Falling oil prices could have an impact as major healthcare operators could negotiate better pricing on supplies derived from oil, such as petrochemicals and plastics.

7. Inpatient admissions declined across all age groups and service lines by around 5 percent to 8 percent, most notably in lines where "effective" outpatient care options are available, including interventional cardiology.

8. Prescription drug prices were up around 12 percent this year compared to last year, leading to rising inflation for medical care commodities while medical equipment and supplies went up 0.3 percent in the third quarter of 2014 compared to the same period of 2015.

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