Despite my gloomy report yesterday on the failures of many medical and group practices, todays statistics offer some encouragement.
Total spending on health care in California grew by almost 300% from 1991 to 2009, but the state's spending growth rate has slowed in recent years, according to a new report from the California HealthCare Foundation, the Los Angeles Times' "Money & Co." reports.
According to the CPI as published by the U.S. Dept. of Labor the overall rate of inflation for the CPI is 2.7% for the last 12 mos. (03/12) and 0.3 for 03/12.
Medical care commodities
09/11 10/11 11/11 12/11 01/12 02/12 03/12
2 .3 .2 .2 .6 .8 .4 0.8 0.4 end 03/12 3.3
CHCF publishes California Healthline.
According to the report, "Since reaching its peak of 9.7% in 2003, the pace of growth in health spending has been decelerating. By 2009, towards the end of the recession, spending grew [by] 4.5%, similar to the U.S. rate of 4.6%, and the slowest pace since 1999." Although medical inflation continues to exceed the general increase in the CPI the rate of increase is declining, with the general CPI at 2.7% and the Medical CPI at 3.3%
The report also found that:
- Health care spending in California per capita in 2009 was $6,238, the ninth-lowest in the U.S.;
- Spending on health care accounted for 12.2% of California's economy, a smaller portion than most states;
- Hospital and physician services accounted for the majority of health care spending, at 63%; and
- Medicare and Medi-Cal, California's Medicaid program, accounted for nearly 40% of the state's health care spending, compared with 27% in 1991 (McMahon, "Money & Co.," Los Angeles Times, 5/9).