Analysis by Altarum Institute’s Center for Studying Health Spending indicates that health care prices in March 2011 were 1.9 percent higher than in March 2010 – the third consecutive month of less than 2 percent growth.

“For the first time since 1997-98, health care price inflation has dropped below 2 percent for three consecutive months” said the director of the center, Dr. Charles Roehrig. “This bodes well for continued low growth in health spending as we move into the second quarter of 2011.”

Altarum’s latest “Health Sector Economic Indicators” report shows that prices for hospitals grew by only 1.4 percent in March, while physician prices increased by only 1.6 percent. These two sectors were large enough to offset the 4.0 percent growth in prices for prescription drugs and hold overall growth below 2 percent.

While this brief emphasizes prices, it also incorporates data from Altarum’s March health spending brief, thus revealing the striking role of utilization in health spending growth trends. The report shows that health care utilization has been more important than prices in determining the rate of growth in national health spending.

“In our March 2011 spending brief, we noted a continuation of historically low rates of growth in health spending,” said Altarum’s Roehrig. “Over the past 10 years or so, the rate of increase in health care utilization has slowed considerably and been the main contributor to slower spending growth. However, over the past few months, slower price growth has offset a rebound in utilization to keep spending growth at low levels. We are particularly interested in understanding the determinants of the utilization trends.”

Altarum’s analysis is based on U.S. Bureau of Labor Statistics price data, and its own monthly composite health care price index, which is patterned after the price index developed by the Centers for Medicare & Medicaid Services. To see the April and previous “Health Sector Economic Indicators” reports, visit Altarum’s website at www.altarum.org/healthindicators. You may also join Altarum’s distribution list to receive email alerts of all future releases of the “Health Sector Economic Indicators” reports.

March 23, 2011 – ANN ARBOR, Mich.—Analysis by Altarum Institute’s Center for Studying Health Spending indicates that health spending in January 2011 grew by 4.4 percent compared to January 2010—the 28th consecutive month of historically low growth.

“The rate of increase in health spending has been hovering at an historically low level for more than two years, and health spending as a share of GDP has stabilized since the start of the economic recovery in June 2009,” said Altarum Center for Studying Health Spending director Dr. Charles Roehrig. “If these health spending trends continue, and if recent consensus forecasts of GDP growth materialize, we will enter a rare period of decline in the health spending share of GDP.”

Altarum’s latest “Health Sector Economic Indicators” report shows that health spending growth for the 28 months from October 2008 through January 2011 has averaged 3.9 percent and has not exceeded 4.4 percent for any given month. The health spending share of GDP was 17.7 percent in January 2011, up from 16.3 percent at the start of the recession (December 2007), but relatively unchanged from January 2010.

“For health spending as a share of GDP to stabilize over the long term, it must actually decline significantly during economic expansions to offset the increases that inevitably occur during recessions,” said Altarum’s Roehrig. “While current trends are encouraging, we have not seen such declines in past recoveries. The extent to which recent world events adversely affect GDP growth will be a key factor in whether the health spending share declines, holds steady, or even increases over the next few months.”

Altarum’s analysis is based on its own monthly health spending estimates that combine U.S. Bureau of Economic Analysis National Income and Product Account data and the recently re-benchmarked National Health Expenditure Account data. To see Altarum’s March “Health Sector Economic Indicators” report, visit Altarum’s website at www.altarum.org/healthindicators. You may also join Altarum’s distribution list to receive e-mail alerts of all future releases of the “Health Sector Economic Indicators” reports.

Acquisition of Palladian Partners Provides Altarum with Vital New Health Communications and Marketing Capabilities

ANN ARBOR, Mich. –Altarum Institute President and CEO Lincoln Smith announced today that Altarum has finalized its acquisition of Silver Spring, Maryland-based Palladian Partners, Inc., a health communications and services company. Palladian will become a for-profit, wholly owned subsidiary of Altarum and will continue to operate from its current headquarters in Silver Spring.

“In our client-funded and internally chartered work, we are meeting a growing requirement to help design and deliver insightful and targeted health communications, ranging from public service announcements, to research publications, to social media outreach,” said Smith in making the announcement. “Palladian Partners’ experience in providing health communications support to the government and private sector will add a vital new capacity to Altarum and will ensure we can offer our current and future clients a full range of services.”

Palladian Partners specializes in science, medical, and public health communications services for government agencies and the private sector. Services include strategic communications planning; writing and editing; publication development and graphic design; web content strategy; website design and development; digital media production; public outreach and media relations; research and evaluation; and conference management. Founded in 1996, Palladian Partners has approximately 60 employees and $10 million in annual revenues. The acquisition will grow Altarum’s total employee base to more than 430 and increase annual revenues to nearly $90 million.

“Joining the Altarum team is tremendously exciting for us,” said Palladian President Beth Maloney. “Having partnered with Altarum on several projects over the past three years, we know the breadth of consulting expertise they offer, and are pleased that our services officially will be a part of the organization. Palladian will continue providing top-notch support to our clients while leveraging the unique capabilities of Altarum.”

Aboiut Altarum
Altarum Institute (www.altarum.org) integrates objective research and client-centered consulting skills to deliver comprehensive, systems-based solutions that improve health and health care. A nonprofit serving clients in the public and private sectors, Altarum employs more than 400 individuals and is headquartered in Ann Arbor, Michigan with additional offices in the Washington, DC area; Sacramento, California; Atlanta, Georgia; Portland, Maine; and San Antonio, Texas.

February 24, 2009 WASHINGTON, DC – A first-of-its-kind study indicates that mental disorders and heart conditions are the two most expensive medical conditions in the United States in terms of personal health spending.

The information comes from ground-breaking research lead by Dr. Charles Roehrig of Ann Arbor, Michigan-based Altarum Institute. Published in Health Affairs, the study – “National Health Spending by Medical Condition, 1996-2005″ – for the first time ever provides annual estimates of national personal health spending by medical condition.

“By offering an estimate of health expenditures by medical condition, this research provides a starting point for analyzing how to achieve sustainable expenditure growth without compromising value,” said Roehrig.

The study indicates that spending for mental disorders – such as anxiety, depression, and dementia – was the highest, accounting for $142.2 billion in 2005, or 9 percent of personal health spending. Heart conditions were the second most expensive condition in the United States, amounting to $123 billion in 2005, 8 percent of personal health spending.

Roehrig’s research also found that personal health spending in the United States grew by about 7 percent annually from 1996 to 2005. During the same period, economy-wide price inflation averaged only 2 percent and population growth averaged 1 percent. According to the study, changes in prevalence, treatment patterns, and costs per treatment were responsible for about 4 percentage points of the average annual growth rate in personal health spending.

The research involved integrating data from the National Health Expenditures Accounts, the Medical Expenditure Panel Survey, the National Nursing Home Survey, and other national datasets. The study was co-authored by George Miller, also of Altarum Institute; Craig Lake of the Arbor Research Collaborative for Health; and Jenny Bryant of the Pharmaceutical Research and Manufacturers of America.

The study can be reached from the Altarum Institute Web site or at http://www.healthaffairs.org/.

ANN ARBOR, Michigan – Altarum Institute President and CEO Lincoln Smith announced today that Altarum has purchased Rockville, Maryland-based KAI Research, Inc. (KAI). KAI will become a for-profit, wholly-owned subsidiary and will continue to operate from its current headquarters in Maryland.

“One of Altarum’s core research thrusts is health care innovation and innovative care delivery. Purchasing KAI will add a completely new dimension to our effort,” said Smith in making the announcement of the acquisition. “KAI’s support of clinical research and science-based innovation in health care provides critical new technical capabilities and market presence for Altarum. With the addition of KAI, we have a major opportunity to strengthen clinical research and to enhance the application of research-based knowledge for the most effective and safe health care practice.”

KAI was founded in 1986. The company employs approximately 70 employees and generated more than $10 million in revenue in 2008. KAI provides innovative, cost-effective and practical support to the pharmaceutical and biotech industry, academic institutions and the National Institutes of Health (NIH). It currently supports pharmaco-vigilance activities for over 90 marketed drugs and is providing safety surveillance for dozens of ongoing clinical trials. In addition, KAI’s clinical research and information technology (IT) capabilities support potential preventive, diagnostic and therapeutic measures in health care practice.

“We are excited about becoming a part of Altarum – it is the logical next step for KAI. There are great synergies between the two organizations that will enable us to make an even greater contribution to improving health care,” commented both Selma Kunitz, President of KAI and Rene Kozloff, Executive Vice President of KAI. “By integrating our clinical research expertise with Altarum’s research and consulting model, we will be in an even better position to provide our clients with a new range of capabilities.”

ANN ARBOR, MI (October 27, 2008) – Michigan-based nonprofit Altarum Institute has announced the launch of its new $7 million Mission Projects Initiative. The self-funded Initiative is designed to solve pressing health care issues using systems methods at institutional, organizational, and community levels.

“Altarum Institute’s mission is to improve human health,” said Lincoln Smith, President and CEO of Altarum. “The Mission Projects Initiative combines Altarum’s financial and technical resources and applies them in communities that have seen their health and health care challenges go unaddressed.”

The initial three Mission Projects will be conducted simultaneously, lasting approximately two years. The projects, designed and conducted in concert with local and national partners, will take place at selected pilot program sites around the country. The pilot sites will serve as laboratories where best practices can be studied and new methods modeled.

The first Mission Project will focus on preventing childhood obesity by supporting health-promoting changes in clinical, community, corporate, and governmental sectors. The second project seeks to facilitate integration and coordination of community health and social services for veterans. The third project will foster innovation in community health centers – free or reduced-cost local clinics that provide care to the poor and uninsured.

Each project will attempt to achieve improvements at the pilot program sites that can be sustained once Altarum’s direct involvement is complete. At the conclusion of the projects, Altarum will share best practices and suggested policy and practice improvements so that solutions can be replicated nationwide.

“Our goal with the Mission Projects is simple. First-and-foremost, we hope the dollars and tools we provide will improve the health status of the individuals and communities involved in these projects,” said Smith. “If we achieve nothing else, we will have succeeded. But we believe the ultimate impact will be greater. We expect each project to make its own ‘ripple’ – creating a model for systems-based change in health care that can be replicated in communities across the nation.”

About Altarum Institute
Altarum Institute (www.altarum.org) integrates objective research and client-centered consulting skills to deliver comprehensive, systems-based solutions that improve health and health care. A nonprofit, Altarum employs more than 250 individuals and is headquartered in Ann Arbor, Michigan with additional offices in the Washington, DC area; Atlanta, Georgia; Portland, Maine; and San Antonio, Texas.

WASHINGTON, DC (October 1, 2008) – Altarum Institute, a nonprofit health systems research and consulting organization, has launched its own “blog” dedicated to discussion and debate on health care issues. Called the “Altarum Institute Online Health Policy Forum,” the blog will feature work from both Altarum Institute experts and guest writers and will allow readers to comment on postings.

“The Health Policy Forum is one important way for us to engage multiple communities in thoughtful conversation about the direction of health and health care in America,” said Lincoln Smith, President and CEO of Altarum Institute. “Informing the public debate on these critical policy issues is core to our charter as a nonprofit institution.”

The blog will expand its capabilities with the launch of the new Altarum Institute web site, set to go live at the end of 2008. With the new site, the Health Policy Forum will offer more dynamic commenting capability for readers. It will also allow subscribers to share content through the use of social book marking and to be alerted to new blog postings through RSS feeds.

“Real transformation in how we deliver care and promote health in our nation starts with the free-flow of ideas and vigorous debate,” said Smith. “Blogs transcend the traditional news media and policy journals and can stimulate conversation in a way few other mediums can.”

To read the Altarum Institute Online Health Policy Forum and join the debate, visit www.altarum.org and click on “Publications.”

Altarum Institute (www.altarum.org) is a nonprofit, health systems research organization. Altarum integrates objective research and client-centered consulting skills to develop comprehensive, systems-based solutions to improve our nation’s health. Altarum Institute employs more than 250 individuals and is headquartered in Ann Arbor, Michigan with additional offices in the Washington, DC area; Atlanta, Georgia; Portland, Maine; and San Antonio, Texas.

WASHINGTON, DC (August 5, 2008) – Jesse Milan, Jr., Vice President of Altarum Institute and a prominent leader and advocate on HIV/AIDS issues, will address the 2008 Mexico City Business Council on AIDS conference Thursday, August 7th in Mexico City. The Mexico City Business Council on AIDS conference is a satellite meeting of the XVII International AIDS Conference.

A person living with HIV for 26 years, Milan has spoken and written extensively on HIV/AIDS issues. He is currently chairman of the CDC Business and Labor Responds to AIDS Partners Board and chairman of the Los Angeles-based Black AIDS Institute, from which he received the “Hero in the Struggle” award earlier this year. From 2002-2007, he served as co-chair of the Centers for Disease Control and Prevention (CDC)/Health Resources and Services Administration (HRSA) Advisory Committee on HIV and STD Prevention and Treatments.

Milan joined Altarum Institute in the spring of 2008 and is the Director of the Institute’s Community Health Systems group.

About Altarum Institute
Altarum Institute (www.altarum.org) is a nonprofit health systems research institute that helps clients research and apply health systems solutions to improve our nation’s health. Altarum employs 250 individuals and is headquartered in Ann Arbor, Michigan with additional offices

ANN ARBOR, Michigan (June 16, 2008) – Altarum Institute President and CEO Lincoln Smith announced today that Dr. Marvin H. McKinney has been appointed for a three year term to the Institute’s Board of Trustees.

Dr. McKinney is a visiting research fellow at the Frank Porter Graham Child Development Institute at the University of North Carolina, Chapel Hill. He also serves as senior consultant to the Family Research Initiative at Michigan State University.

“Marvin brings a powerful voice and perspective to the Board,” said Smith in announcing the appointment. “His experience in early childhood development and the social determinants that shape the health status of our children combined with his first-hand knowledge of the philanthropic community will be invaluable as we explore new research areas and funding vehicles to improve our nation’s health care system.”

Prior to his work at the University of North Carolina, Dr. McKinney was the program director for youth and education programs at the W.K. Kellogg Foundation in Battle Creek, Michigan. He has also served as associate director/community scholar in residence for the Institute for Children, Youth, and Families at Michigan State University where he conducted ethnographic research in the areas of pervasive poverty and conducted an in-depth study of the delivery of early childhood education programs. Earlier in his career, McKinney was a program officer at the C.S. Mott Foundation and a state coordinator for early childhood education with the Michigan Department of Education.

Dr. McKinney received his Ph.D. from the University of Michigan and completed a Bush Foundation post-doctorate fellowship in child development and public policy at the University of North Carolina.

Altarum Institute (www.altarum.org) is a nonprofit health systems research institute that helps clients research and apply health systems solutions to improve our nation’s health. Altarum employs more than 235 individuals and is headquartered in Ann Arbor, Michigan with additional offices in the Washington, DC area; San Antonio, Texas; and Portland, Maine.