News in brief - Sept. 26, 2011

Overall economic inflation grows faster than cost of medical care

Medical care expenses grew more slowly than other sectors of the economy, according to the monthly report on the consumer price index issued Sept. 15 by the U.S. Bureau of Labor Statistics.

Inflation was 0.4% in August and 3.8% for the past 12 months, primarily driven by growth in prices paid for gasoline, food, housing and clothing. The energy index rose 18.4% over the past year, and the cost of food increased 4.6%.

Prices paid for hospital and related services outpaced inflation, but the cost of services provided by other segments of the health care industry did not. The cost of medical care increased 0.2% in August and 3.2% over the past year. Professional services, a category that includes physicians, grew 0.2% in August and 2.1% for the past year. Hospital care expenses grew 0.5% in August and 6.2% for the previous 12 months.

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AHIP study finds positive early results from ACOs

A look at some of the first accountable care organizations found success in preventing patient hospital readmissions and total days spent in the hospital. Some reported annual savings of as much as $336 per patient.

The study by insurer trade group America's Health Insurance Plans was published in the September Health Affairs and based on interviews with medical directors and program staff working on ACOs for eight health plans (content.healthaffairs.org/content/30/9/1718.short).

The authors said a formal examination of the quality improvements and costs savings would help clarify what portion of the improvements seen at the pilot ACOs were directly attributable to the ACO model.

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