If healthcare is so closely tied to fossil fuels, do we see a fluctuation in healthcare cost when supply pricing of fossil fuels changes? Yes, but an even more interesting trend is what happens when the medical industry doesn’t use fossil fuels. A Kaiser study found that from 2000-2008, pharmaceutical price increases rose by approximately 114% in comparison to other medical expenditure categories. For example, hospital and patient services increased roughly 88%. During this time, the pharmaceutical industry was pursuing replacing chemical agents with biological agents in their processes. It turns out that the expense to manufacture and administer those biological agents was significantly higher. If you have a specific question, send us a message or plan to join us at the Eastern Gas Compression Roundtable, May 3-5, 2022 at the David Lawrence Convention Center in downtown Pittsburgh, PA.
Source: Norbeck TB. Drivers of health care costs. A Physicians Foundation white paper – second of a three-part series. Mo Med. 2013;110(2):113–118.