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March 20, 1967


JAMA. 1967;199(12):31-32. doi:10.1001/jama.1967.03120120011003

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Medical Cost Report—  Medical care prices, which have been rising since World War II, rose rapidly in 1966 and will continue upward in the foreseeable future, according to a Department of Health, Education, and Welfare medical price study submitted to President Johnson."The study stresses the importance of using medical resources more efficiently if we are to meet the needs of the nation for medical care and moderate the rise in medical care prices," HEW Secretary John Gardner commented. The report said hospital daily charges, which have risen about 6% a year between 1960 and 1965, went up 16.5% in 1966—the largest annual increase in 18 years. Physicians' fees, which had been rising about 3% a year from 1960 to 1965, went up 7.8% in 1966—the biggest annual increase since 1927. In commenting on physicians' fees, the report said "much of this increase was to be expected in view of the