Hospital Spending Far Below Premium Increases

Spending on hospital care grew the fastest of all healthcare expenditures over the past year, according to a new report from Altarum Health.

Hospital spending increased 6.4 percent between August 2010 and August 2011, compared to slightly more than 5 percent for prescription drugs, 4 percent for nursing homes, and slightly more than 2 percent for home healthcare.

Altogether, hospital spending comprised 32 percent of total health expenditures, reaching $864 billion. Physician and clinical services was the second largest expenditure, at 19 percent, or $531 billion...