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The Business of Health Care Report
While prescription drugs account for around 10 percent of total
U.S. health care spending, drug costs have recently contributed disproportionately to a sharp upturn in overall
health costs. In 2001, retail pharmacies dispensed 3.1 billion prescriptions at an average cost of $49.84 each,
up from $45.27 each in 2000. According to National Institute for Health Care management, the
rise in pharmaceutical spending is primarily caused by an increase in the volume of prescriptions. In 1999, doctors
prescribed 146 drugs for every 100 office visits, up from 109 drugs in 1985. There are more first-time users of
prescription medicines. Current users are taking medicines longer. And there are more people taking two or more
medicines at one time. Advertising directly to consumers and physicians also has contributed
to increased prescription drug spending, with direct to consumer marketing pushing demand. Another reason for rising prescription drug spending is the increased rate of diagnosis and treatment of chronic illnesses, such as asthma, diabetes, elevated cholesterol and arthritis. Today, financial barriers have been removed through insurance
for many people to access prescription drugs, driving demand and use. There is no doubt that prescription drugs have contributed
enormously to the improved treatment of many medical conditions, illnesses and diseases in recent years. . .and
to reduction in lost time from work. Even so, the escalating costs of prescriptions raise many
issues. The most important issue from a health care financing perspective is whether the growing use of prescription
drugs will, over time, reduce the need for other, more costly medical treatments and hospitalizations. For Texas Health Resources
and its family of hospitals - Harris Methodist Hospitals, Presbyterian
Healthcare System and Arlington Memorial Hospital - I'm CEO Doug
Hawthorne with "The Business of Health Care Report" on NewsRadio
1080 KRLD.
Source: PRC, Reality Check, focus groups conducted by THR ©
2002 Texas Health Resources |
I'm Doug Hawthorne, President and CEO of Texas Health Resources, with
"The Business of Health Care Report" on 