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Report finds hospital cost increases slowing

Quality Improvement Monitor, August 29, 2008

A new report finds that cost increases incurred by hospitals fell in 2006 because insurers asked for discounts and directed more patients to outpatient care, according to Bloomberg News.

The cost of providing care increased 0.9% in 2006, much lower than the 4.8% annual increase reported from 1997 to 2006, the Agency for Healthcare Research and Quality (AHRQ) reported this week.

The lower rise in costs likely reflects pressures applied by insurers promoting outpatient care, Claudia Steiner, an AHRQ researcher, told Bloomberg News.

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