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Factors Contributing to Rising Health Care Costs

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There are many factors contributing to the rising costs of health care. The five key factors include population growth, population aging, disease prevalence or incidence, service utilization, and service price and intensity (Dieleman, 2017). Between 1996 and 2013, inflation‐adjusted spending on inpatient, ambulatory, retail pharmaceutical, nursing facility, emergency department, and dental care increased at 3.5% annually, from $1.2 trillion to $2.1 trillion (Dieleman, 2017). The areas with the highest increases were in emergency departments (6.4%) and on medications (5.6%). Diabetes as a whole had the greatest increase in cost at an annual rate of 6.1–7.0%, translating into $57.9–$70.6 billion (Dieleman, 2017). Back and neck pain had the second‐largest increase in spending, at an annual rate of 6.5% (or $57.2 billion) between 1996 and 2013. During the same time frame, the treatment of hypertension rose to $47.6 billion, the treatment of hyperlipidemia to $41.9 billion, and depressive disorders to $30.8 billion annually (Dieleman, 2017).

Kelly Vana's Nursing Leadership and Management

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