business
Prices paid for physician services grow more slowly than overall inflation
NEWS IN BRIEF — Posted Feb. 27, 2012
For the 10th month in a row, the annual inflation rate for physician services grew more slowly than the economy as a whole, according to the monthly consumer price index released Feb. 17 by the Bureau of Labor Statistics.
The cost of physician services went up 0.2% in January, with an annual rate of 2.4%. Inflation in the economy as a whole for that month was 0.2%, with the annual rate at 2.9%. The physician measure reflects total prices paid by patients and insurers to physicians for services.
Medical care costs went up 0.3% for the month and 3.6% during the past year. This was primarily driven by growth in the cost of hospital services, which went up 0.3% in January and 5.3% for the year.
Historically, the prices paid for physician services have grown faster than the rate of inflation. This was no longer true as of April 2011.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2012/02/27/bibf0227.htm.
