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Medical device inflation

This article was originally published in The Gray Sheet

Executive Summary

Device Producer Price Index increase of 3.1% between 1992 and 1993 is well below the 5.9% increase in the overall medical care Consumer Price Index during the same period, according to a report published by the Health Care Technology Institute. The institute measures device inflation with the PPI because, unlike the CPI, it does not include costs associated with transferring goods to purchasers. Between 1985 and 1993, the PPI for medical equipment rose at an average annual rate of 2.9%, while the medical care CPI showed an average annual increase of 7.4%



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