Arizona Healthcare Dollars by Service Category, 2002–2010 (In Billions)

• In the future, pharmaceuticals will comprise the largest single category of healthcare expenditures, followed by physician services. Outpatient hospital services will also increase rapidly and, when combined with inpatient services will make hospitals by far the largest expense category.
• As the shift to providing care in outpatient settings whenever possible continues, the proportion of the healthcare dollar spent on hospital inpatient care will continue to erode, from approximately 23% in 2002 to 21% by the end of the decade. Hospital outpatient care and pharmacy expenditures are expected to continue to show high trends, although perhaps not as high as in recent years.

Notes:

1. Health care expenditures shown do not include Behavioral Health Services, Long Term Care Services, or Dental Services. These figures do not include expenditures on services not covered under each segment’s respective insurance products.
2. Allocation of health care dollars to service category may vary somewhat among primary market segments. Medicaid services in particular may allocate health care dollars to the "Other" service category that may be more typically allocated to the “Hospital Outpatient" or other service categories.
3. Includes out-of-pocket (OOP) expenses. OOP expenses relate to costs the individual pays when a healthcare service was provided; for instance, annual deductibles, co-payments, and coinsurance.
4. Due to rounding, column components may not add to annual totals shown in other tables.