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What can you say about how the price of medical care services changes? As you think about what you might say, realize that the figures have been adjusted for inflation.

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We have discussed the level of NHE in the United States and looked to some degree at how much money is being spent for care by various service categories such as hospitals and physicians.

Click here to view and study the NHE data for selected calendar years between 1970 and 2003 and for selected service categories (with the exception of the catch-all category of “other”) (Centers for Medicare & Medicaid Services [CMS], n.d.).

Answer the following questions in a 2- to 3-page Microsoft Word document:

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  • Examine the trends in expenditures for the service categories presented in the table. What is the magnitude and direction of spending changes within and across each of these categories: the percentage of GDP spent on NHE and the NHE per capita.
  • What can you say about how the price of medical care services changes? As you think about what you might say, realize that the figures have been adjusted for inflation. Also, assume that not all increases in healthcare costs are caused by increases in utilization.
  • Examine the rates of growth in the service categories (except the category “other”). What trends do you see in the mix of healthcare services used by the US public? What factors might contribute to these trends?

Support your responses with examples.