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Healthcare prices inched up in June

Only one sector - blood and organ banks - experienced a dip
By Richard Pizzi

Overall U.S. healthcare prices rose slightly from May to June 2013, according to the federal Bureau of Labor Statistics.

The BLS' Producer Price Indices measure average changes in selling prices received by domestic producers for their output. The June PPI report indicated that prices across the range of healthcare industries were 0.2 percent higher than in May, and 1.2 percent higher than a year ago.

The PPI translates into actual or expected reimbursement for a sample of treatments or services.

In the May through June period, prices received by hospitals rose 0.2 percent and the PPI for dentist offices rose 0.5 percent, while the PPI for physician offices remained flat, as did the PPI for home healthcare services and residential mental retardation facilities.

Prices in the medical and diagnostic laboratory sector increased 0.7 percent last month, the largest jump in the industry, while the PPI for nursing care facilities rose 0.3 percent across the month.

The only sector to experience a PPI drop in the June report, blood and organ banks, saw prices dip by 0.1 percent from May through June.

Comparing June 2013 to June 2012, overall healthcare PPIs rose 1.2 percent.

Hospital prices were 1.9 percent higher in June than a year ago, while physician office prices were 0.2 percent higher. Nursing care facility prices increased 1.0 percent from June 2012 to June 2013 and the PPI for dentist offices rose 2.1 percent across the 12-month period.

The PPI for medical and diagnostic laboratories dropped 1.2 percent from June 2012 to June 2013, while prices for home healthcare services fell 0.1 percent during the same period. Residential mental retardation facilities saw prices rise significantly in 2013, with a PPI increase of 4.4 percent from year to year. Blood and organ banks experienced a PPI increase of 0.4 percent in the same period.

The PPIs for healthcare industry segments measure changes in actual or expected reimbursement received for services across the full range of payer types. This includes the negotiated contract rate from the payer plus any portion expected to be paid by the patient.