The chart to the right shows that the expenditures for prescription drugs have steadily increased since 1994.  In fact, over the five year period, 1994-1998, the expenditures for prescription drugs have increased far more than any of the other top five health care categories.  In 1998 alone, the growth in spending for prescription drugs grew 15.4 percent, double that of any other spending category.  For example, the growth in spending for physician services in 1998 was 5.4 percent, for dental services, 5.3 percent, for nursing home care, 3.7 percent, and for hospital care, 3.4 percent.

What the rise in spending for prescription drugs is all about is just one of the questions that we will seek to address in the future on this portion of our Web site.   

Currently, on our page, PBMs and Chronic Disease, we explore the ways in which the private and public sectors have attempted to manage the increasing cost of prescription drugs. 

On our page, Mergers & Alliances, we explore the ways in which the changing prescription drug environment may affect costs in the future.

Check back from time to time in order to see what we've added to our Hot Topics page.

Lucy Canter Kihlstrom, PhD

Copyright © 2000 Institute for the Study of Healthcare Organizations & Transactions

Last modified:  03.26.2004 11:03 PM