The more drugs are used, the lower the cost of hospitalization

May 27, 2008

A new study finds a direct correlation between increasing drug costs and decreasing hospitalization costs.

A new study has found a direct association between rising drug costs and decreases in more expensive hospital care and physician services. Produced by Mark Farrah Associates, a data aggregator and publisher providing health plan market data, the report was published in the America’s Health Insurance Plans’s HI-WIRE Connection. The authors of the report noted that drugs account for only 10% of total U.S. health expenditures-a cost-effective form of health care in view of their ability to lower the cost of hospitalization and physician visits.

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