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. 2004 Winter;26(2):1–16.

Table 5. Personal Health Care: Contribution to Average Annual Growth, Non-Elderly and Elderly.

Personal Health Care Total Hospital Care Physician and Clinical Services Prescription Drugs Nursing Home Home Health All Other

Percent
Average Annual Growth
Under Age 65
1987-1996 8.0 6.6 8.8 11.1 9.0 14.6 8.2
1996-1999 6.0 4.1 5.4 17.0 3.1 7.4 5.4
Difference -2.0 -2.5 -3.4 6.0 -6.0 -7.1 -2.8
65 Years or Over
1987-1996 9.0 8.0 7.1 10.0 9.2 23.0 9.5
1996-1999 4.3 2.4 6.6 13.3 4.1 -5.8 5.2
Difference -4.7 -5.6 -0.5 3.3 -5.1 -28.9 -4.3
Contribution of Each Service to the Change1
Under Age 65
1987-1996 100.0 33.8 31.6 9.8 2.9 2.6 22.1
1996-1999 100.0 26.2 26.5 25.4 1.4 2.3 19.6
Difference 0.0 -7.7 -5.1 15.6 -1.6 -0.3 -2.5
65 Years or Over
1987-1996 100.0 36.5 15.1 6.8 19.2 10.6 31.0
1996-1999 100.0 21.7 28.2 21.5 18.0 -8.4 37.0
Difference 0.0 -14.8 13.0 14.8 -1.2 -19.0 6.0
1

These numbers show what service(s) drove the deceleration in the growth rate from one period to another. For example, hospital care accounted for 36.5 percent of the 9.0 percent average annual annual growth in aged personal health care (PHC) from 1987 to 1996, but only accounted for 21.7 percent of the 4.3 percent average annual growth in aged PHC from 1996 to 1999. Each cell was calculated by taking the dollar change in the period of a particular service and dividing it by the dollar change in the period of PHC. The change in elderly hospital spending from 1987 to 1996 was $66.9 billion (134.2-67.3) while the dollar change in elderly PHC spending was $183.5 billion (341.1-157.7). The contribution of 36.5 was calculated by dividing 66.9 by 183.5.

SOURCE: Keehan, S., Lazenby, H., Zezza, M., and Catlin, A., Centers for Medicare & Medicaid Services, 2004.