The Centre of Medicare and Medicaid Services (CMS) in its report released, certainly points out the slower growth rate of the nationwide spending on healthcare facilities in 2017 when compared to 2016. In 2017 it was nearly about 3.9 % whereas in 2017 it was a percent bigger to be about 4.9%.
The report numbered out the reasons for this relaxed growth of 2017. The report mainly shows the four major reasons of the falling graph.
- Hospital Expenditure: This fat money consuming section which was held responsible for a 5.6 % growth rate in 2016 now accounts for 4.6 % to an estimated value of $1.1 trillion. Hospital expenditures are considered to be one-third of the total healthcare spending. This majorly points out the negligence in use of advanced or sometimes basic healthcare services.
- Clinical Spending: This is a small cap expenditure when compared in whole, it accounts for one-fifth of the total healthcare spending. Clinical expenditure has see a substantial decline since 2015, it was 6 % in 2015 then 5.6 % in 2016 and now in 2017 it only acquires a share of 4.2 % that is roughly $694.3 billion.
- Drug Money: Spending on drugs and medicine may be the most common thing ever considered in the healthcare perspective, but this section only accounts for 10 % that is spent on retail drug prescription. It saw a growth of 0.4 % in 2017 of about $333.4 billion which was slower than the growth rate of 2.3 % in 2016 which stands far behind to the rate of 8.9 % of 2015 followed by 12.4 % in 2014. The main reason considered here is the possibility of lower clinical spending and hospital expenditure that lowers the prescription and thus the drugs expensed is lower.
- Sponsorship: The major reason for the overall setback of healthcare spending can mainly be the Federal Governments responsibility due to cut short of its healthcare fund amount, which was lowered to 3.2% in 2017 as compared to 4.9% in 2016. This lower rate of Medicaid spending was answered to be mainly because of lower medical enrollment.
Healthcare spending when compared to overall economy is slightly in a side car with 3.9% which is slower than the 4.2 % growth of the overall economy. However, the healthcare spending share of the economy in 2017 was slightly equal to 2016 of 18 percent.