In 1977, Arnold Silver published the first and only Hospital Inflation Projections in his newsletter, Rate Controls.

These projections have been useful to all healthcare organizations including hospitals, insurers and suppliers. For hospitals, these projections can be used directly for budgeting and rate setting purposes or as a second opinion on the inflation figures the hospital has included in their budget. For insurers and suppliers, the figures have been used as a basis for negotiating contracts.

It is very important in the budgeting and rate setting process to have accurate inflation projections. If the hospital over-projects, the money WILL be spent. Under-projections are a problem as well. Department heads will be held accountable for spending overages that are beyond the hospital's control.

Projections are based on CMS data, Medicare Cost Reports, industry surveys and previous trends. They are also based on the best information we have at the time and are subject to numerous variables.