Table 10. Quarterly Index Levels and Four-Quarter Moving Average Percent Change in the Prospective Payment System (PPS) Hospital Input Price Index, by Expense Category: 1997-2001.
| Expense Category1 | Price/Wage Variable | Base Year Weights FY 19922 | 1997 Q2 |
1997 Q3 |
1997 Q4 |
1998 Q1 |
1998 Q2 |
1998 Q3 |
1998 Q4 |
1999 Q1 |
Forecast | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
| ||||||||||||||||||
| 1999 Q2 |
1999 Q3 |
1999 Q4 |
2000 Q1 |
2000 Q2 |
2000 Q3 |
2000 Q4 |
2001 Q1 |
|||||||||||
| Index Levels | ||||||||||||||||||
| Total | — | 100.000 | 114.2 | 115.1 | 115.9 | 116.7 | 117.9 | 118.9 | 119.3 | 119.9 | 120.9 | 122.0 | 122.8 | 123.6 | 124.3 | 125.3 | 126.1 | 127.0 |
| Compensation | — | 61.390 | 116.1 | 117.1 | 118.1 | 119.0 | 119.9 | 121.2 | 121.8 | 122.7 | 123.9 | 125.0 | 125.9 | 126.9 | 127.6 | 128.8 | 129.7 | 130.8 |
| Wages and Salaries | HCFA Occupational Wage Index4 | 50.244 | 115.7 | 116.9 | 117.9 | 118.9 | 119.8 | 121.1 | 121.8 | 122.8 | 123.9 | 125.0 | 126.0 | 126.9 | 127.7 | 128.9 | 129.8 | 130.8 |
| Employee Benefits | HCFA Occupational Benefits Index4 | 11.146 | 117.6 | 118.1 | 119.0 | 119.6 | 120.6 | 121.4 | 122.1 | 122.5 | 123.6 | 124.7 | 125.6 | 126.6 | 127.2 | 128.3 | 129.4 | 130.7 |
| Other Professional Fees | ECI-W/S: Professional/Technical (Private) | 2.127 | 117.3 | 117.9 | 118.9 | 119.8 | 120.9 | 122.2 | 123.0 | 123.3 | 124.5 | 125.7 | 126.6 | 127.7 | 128.6 | 129.8 | 130.7 | 131.9 |
| Energy and Utilities3 | — | 1.542 | 109.3 | 113.6 | 111.3 | 109.0 | 109.8 | 113.4 | 109.6 | 109.3 | 110.5 | 114.3 | 112.0 | 112.6 | 112.8 | 116.7 | 114.0 | 114.9 |
| Professional Liability Insurance | HCFA-Professional Liability Premium | 1.189 | 96.1 | 95.9 | 96.0 | 96.1 | 96.2 | 96.4 | 96.8 | 97.5 | 97.9 | 98.1 | 98.1 | 97.8 | 97.8 | 98.0 | 98.3 | 98.6 |
| All Other | — | 33.752 | 111.5 | 112.1 | 112.5 | 113.4 | 115.1 | 115.5 | 115.6 | 116.0 | 116.7 | 117.5 | 118.3 | 118.9 | 119.5 | 120.0 | 120.7 | 121.5 |
| Other Products3 | — | 24.825 | 110.5 | 110.8 | 111.0 | 112.0 | 114.0 | 114.2 | 114.1 | 114.2 | 114.8 | 115.6 | 116.2 | 116.7 | 117.2 | 117.4 | 118.0 | 118.6 |
| Pharmaceuticals | PPI-Prescription Drugs | 4.162 | 119.3 | 119.7 | 121.1 | 129.2 | 143.7 | 145.7 | 146.8 | 148.8 | 150.3 | 151.2 | 152.6 | 154.3 | 155.6 | 156.2 | 157.7 | 159.8 |
| Food: Direct Purchase | PPI-Processed Foods | 2.314 | 110.5 | 109.9 | 109.4 | 107.7 | 107.6 | 108.4 | 107.9 | 107.6 | 105.8 | 105.9 | 105.8 | 106.1 | 106.8 | 107.1 | 107.2 | 107.6 |
| Food: Contract Service | CPI-Food Away from Home | 1.072 | 111.6 | 112.3 | 113.2 | 113.8 | 114.5 | 115.3 | 116.0 | 116.9 | 117.7 | 118.6 | 119.7 | 120.8 | 121.7 | 122.8 | 123.8 | 124.7 |
| Chemicals | PPI-Industrial Chemicals | 3.666 | 115.3 | 115.9 | 115.7 | 114.0 | 111.7 | 110.3 | 109.2 | 108.3 | 108.7 | 110.6 | 111.2 | 111.0 | 110.8 | 110.5 | 111.3 | 111.1 |
| Medical Instruments | PPI-Medical Instruments/Equipment | 3.080 | 104.5 | 104.9 | 104.2 | 103.6 | 103.1 | 103.3 | 103.5 | 103.9 | 104.0 | 104.2 | 104.3 | 104.6 | 104.7 | 104.7 | 104.9 | 105.6 |
| Rubber and Plastics | PPI-Rubber/Plastic Products | 4.750 | 107.3 | 107.4 | 107.3 | 107.2 | 106.9 | 106.6 | 106.5 | 106.1 | 107.0 | 107.5 | 108.0 | 108.4 | 108.6 | 108.8 | 108.8 | 108.8 |
| Paper Products | PPI-Converted Paper and Paperboard | 2.078 | 109.2 | 109.3 | 111.6 | 113.6 | 113.3 | 113.3 | 112.1 | 111.5 | 112.9 | 115.0 | 115.9 | 116.6 | 117.2 | 118.1 | 119.2 | 120.0 |
| Miscellaneous Products | PPI-Finished Goods | 2.236 | 107.2 | 107.2 | 107.3 | 106.1 | 106.4 | 106.6 | 106.9 | 106.9 | 107.7 | 108.0 | 108.5 | 108.9 | 109.3 | 109.5 | 110.1 | 110.6 |
| Other Services3 | — | 8.927 | 114.3 | 115.8 | 116.6 | 117.5 | 118.1 | 119.1 | 119.6 | 120.8 | 121.9 | 123.0 | 124.1 | 125.0 | 126.1 | 127.2 | 128.2 | 129.3 |
| All Other: Labor-Intensive | ECI-Comp: Service Workers | 7.277 | 115.0 | 116.9 | 117.8 | 118.8 | 119.4 | 120.6 | 121.2 | 122.5 | 123.8 | 124.9 | 126.2 | 127.2 | 128.4 | 129.7 | 130.8 | 131.9 |
| Four-Quarter Moving-Average Percent Change | ||||||||||||||||||
| Total | — | 100.000 | 2.1 | 2.0 | 2.1 | 2.3 | 2.6 | 2.9 | 3.0 | 3.0 | 2.9 | 2.7 | 2.7 | 2.8 | 2.9 | 2.9 | 2.8 | 2.7 |
| Compensation | — | 61.390 | 2.6 | 2.6 | 2.7 | 2.9 | 3.1 | 3.3 | 3.3 | 3.3 | 3.3 | 3.2 | 3.2 | 3.3 | 3.2 | 3.2 | 3.1 | 3.1 |
| Wages and Salaries | HCFA Occupational Wage Index4 | 50.244 | 2.9 | 2.8 | 3.0 | 3.2 | 3.4 | 3.5 | 3.5 | 3.4 | 3.4 | 3.3 | 3.4 | 3.4 | 3.3 | 3.2 | 3.1 | 3.1 |
| Employee Benefits | HCFA Occupational Benefits Index4 | 11.146 | 1.7 | 1.5 | 1.6 | 1.7 | 2.0 | 2.4 | 2.5 | 2.6 | 2.6 | 2.5 | 2.6 | 2.9 | 3.0 | 3.0 | 3.0 | 3.0 |
| Other Professional Fees | ECI-W/S: Professional/Technical (Private) | 2.127 | 2.7 | 2.6 | 2.6 | 2.8 | 3.0 | 3.2 | 3.3 | 3.3 | 3.3 | 3.1 | 2.9 | 3.1 | 3.2 | 3.3 | 3.4 | 3.3 |
| Energy and Utilities3 | — | 1.542 | 2.6 | 2.3 | 2.0 | 0.7 | 0.6 | 0.3 | -0.7 | -0.2 | -0.2 | 0.1 | 1.0 | 1.6 | 2.0 | 2.3 | 2.3 | 2.0 |
| Professional Liability Insurance | HCFA-Professional Liability Premium | 1.189 | -1.1 | -1.5 | -1.8 | -1.5 | -1.0 | -0.4 | 0.2 | 0.7 | 1.1 | 1.4 | 1.6 | 1.3 | 0.9 | 0.4 | 0.1 | 0.2 |
| All Other | — | 33.752 | 1.1 | 1.1 | 1.0 | 1.2 | 1.8 | 2.3 | 2.7 | 2.8 | 2.3 | 2.0 | 1.9 | 2.0 | 2.3 | 2.4 | 2.3 | 2.2 |
| Other Products3 | — | 24.825 | 0.5 | 0.3 | 0.2 | 0.3 | 1.1 | 1.9 | 2.5 | 2.8 | 2.1 | 1.7 | 1.4 | 1.5 | 1.8 | 1.9 | 1.9 | 1.7 |
| Pharmaceuticals | PPI-Prescription Drugs | 4.162 | 2.9 | 2.6 | 3.1 | 4.5 | 9.0 | 13.7 | 18.1 | 19.5 | 15.1 | 10.6 | 6.6 | 4.0 | 3.8 | 3.6 | 3.5 | 3.4 |
| Food: Direct Purchase | PPI-Processed Foods | 2.314 | 3.7 | 1.8 | 0.5 | -0.6 | -1.6 | -1.7 | -1.8 | -1.4 | -1.1 | -1.3 | -1.5 | -1.8 | -1.2 | -0.3 | 0.5 | 1.2 |
| Food: Contract Service | CPI-Food Away From Home | 1.072 | 2.9 | 2.9 | 2.8 | 2.7 | 2.6 | 2.6 | 2.6 | 2.6 | 2.6 | 2.7 | 2.9 | 3.0 | 3.2 | 3.4 | 3.4 | 3.4 |
| Chemicals | PPI-Industrial Chemicals | 3.666 | 0.0 | 0.3 | -0.2 | -1.3 | -1.7 | -2.8 | -4.0 | -4.6 | -4.5 | -3.3 | -1.5 | 0.4 | 1.6 | 1.6 | 1.1 | 0.5 |
| Medical Instruments | PPI-Medical Instruments/Equipment | 3.080 | -0.4 | -0.8 | -1.5 | -1.2 | -1.2 | -1.3 | -1.1 | -0.8 | -0.2 | 0.4 | 0.7 | 0.8 | 0.7 | 0.6 | 0.6 | 0.7 |
| Rubber and Plastics | PPI-Rubber/Plastic Products | 4.750 | -0.7 | -0.6 | -0.5 | -0.3 | -0.4 | -0.4 | -0.5 | -0.8 | -0.6 | -0.2 | 0.4 | 1.2 | 1.5 | 1.6 | 1.4 | 0.9 |
| Paper Products | PPI-Converted Paper and Paperboard | 2.078 | -5.8 | -4.9 | -3.3 | -1.3 | 0.8 | 2.3 | 2.5 | 1.5 | 0.4 | -0.1 | 0.7 | 2.3 | 3.3 | 3.6 | 3.5 | 3.0 |
| Miscellaneous Products | PPI-Finished Goods | 2.236 | 2.1 | 1.3 | 0.4 | -0.5 | -0.8 | -0.9 | -0.9 | -0.3 | 0.2 | 0.7 | 1.2 | 1.5 | 1.6 | 1.6 | 1.6 | 1.5 |
| Other Services3 | — | 8.927 | 2.8 | 3.2 | 3.4 | 3.6 | 3.6 | 3.3 | 3.1 | 2.9 | 2.9 | 3.0 | 3.3 | 3.4 | 3.5 | 3.5 | 3.4 | 3.4 |
| All Other: Labor-Intensive | ECI-Comp: Service Workers | 7.277 | 2.9 | 3.5 | 3.8 | 4.1 | 4.2 | 3.8 | 3.5 | 3.3 | 3.2 | 3.3 | 3.6 | 3.8 | 3.8 | 3.9 | 3.8 | 3.7 |
For data sources used to estimate the Input Price Index relative weights and choice of price proxies, refer to the August 29, 1997, Federal Register. For the most recent PPS update for payment rates, refer to the July 31, 1998, Federal Register.
Category weights may not sum to total or subtotals because of detail not included.
Represents a subtotal. Detailed categories not shown are listed below by subtotal, detailed category, and base-year weight: Energy and Utilities: Fuel Oil, Coal, and Other Fuel (0.369), Electricity (0.927), and Water and Sewage (0.246). Other Products: Photographic Supplies (0.391), Apparel (0.869), and Machinery and Equipment (0.207). Other Services: Telephone (0.581), Postage (0.272), and Other Non-Labor Intensive (0.796).
The HCFA Occupational Wage and Occupational Benefit Indexes are computed as the weighted-average of 10 ECI categories (ECI for Hospital workers and 9 ECI occupational categories).
NOTES: A dash (—) in the Price/Wage Variable column denotes a total or subtotal produced by adding two or more categories. FY is fiscal year. Q designates quarter of year. HCFA is Health Care Financing Administration. ECI is Employment Cost Index. W/S is wages and salaries. PPI is Producer Price Index. CPI is Consumer Price Index. Comp is compensation. The four-quarter moving-average percent change for the quarter indicated by the column heading is the rate of change in the average index level for four quarters ending in that quarter over the same period of the previous year. The four-quarter moving-average index level for the quarter indicated by the column heading is computed by summing the index level for that quarter and the prior three quarters and dividing by 4. The process is repeated to compute the four-quarter moving-average index level for the same quarter a year ago. The average index level for the quarter indicated by the column heading is divided by the average index level of the same quarter a year ago, and the quotient is subtracted from 1 and multiplied by 100 to determine the four-quarter moving-average percent change in the index.
SOURCES: Health Care Financing Administration, Office of the Actuary: Data from the National Health Statistics Group. Second quarter 1999 forecasts were produced under contract to HCFA by Standard & Poor's DRI.