Refer A Colleague Report: Device Prices Slow to Increase
The Advanced Medical Technology Association (AdvaMed) has released a study that finds medical technology is a small and slow growing part of national health expenditures (NHE).
The report found that in 2006, medical device spending totaled $131.6 billion, or 6.2 percent, of total NHE ($2,112.7 billion). During the 18-year period covered by the study (1989-2006) medical device spending rose only slightly as a percent of NHE—growing from 5.4 percent in 1989 to 6.2 percent in 2006— a 0.8 percentage point increase over the 18-year period.
The report finds that medical device price changes have been consistently low during the 18 years examined. Medical device prices have increased at an average annual rate of 1.1 percent, compared to the Consumer Price Index increase of 2.9 percent, the Medical Consumer Price Index increase of 4.9 percent, and the Medical Services Consumer Price Index Increase of 5.2 percent.
While medical device spending has grown slightly faster than national health expenditures overall, prices for medical devices have actually grown far more slowly than the Medical Consumer Price Index or even the overall Consumer Price Index.
To read the report, visit www.advamed.org.