National Physician Expenditures Slow

Posted on January 24, 2008 by Dr. David Edward Marcinko MBA MEd CMP™

A CMS Health Economics Report

Staff Reporters 

 

The Centers for Medicare and Medicaid Services [CMS] recently reported that while the national health spending growth rate increased slightly in 2006, the percentage rise in expenditures on physician services slowed markedly, due largely to a small Medicare pay increase and its private-sector fallout. 

Overall national health spending reached $2.1 trillion, up 6.7 percent from $1.97 trillion in 2005, while the 2005 growth rate was 6.5 percent – a moderate increase that was possible because of a broad-based slowdown in spending growth in many categories, including physicians and clinical services. These expenditures increased by 5.9 percent in 2006, down from 7.4 percent in 2005.  

For the first time since 1999, physician spending increased more slowly than the gross domestic product, while the small size of Medicare’s physician payment update in 2006 played a role in the decelerating physician spending. 

Any thoughts-please opine?  

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