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Volume 350:2539-2542 June 17, 2004 Number 25 Next

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After a period of more modest increases, spending on health care is again growing much faster than the rest of the U.S. economy (see Figure 1). Between 2001 and 2002, it increased by 9.3 percent, to $1.6 trillion, or $5,440 per person. Hospital spending, which represents about a third of all health care spending, increased by 9.5 percent, as compared with an average annual growth rate of 3.7 percent between 1993 and 2000.¹ Soaring hospital expenses reflect many factors, including demand for new medications and technology, the aging of the population, and increased compensation for medical personnel.

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