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March 2001

Dear Fellow Texans:

I am pleased to present to you the Texas Health Care Spending study. This is the first ever comprehensive health care spending analysis for Texas.

Health care is big business. National health care expenditures have taken an increasing share of our economy, growing from 7.1 percent of the U.S. Gross Domestic Product (GDP) in 1970, to an estimated 14.3 percent in 2000. The U.S. Census Bureau projects continued increases to 16.2 percent of GDP in 2008.

Health care affects all of us—families and children taxpayers, businesses, health care providers, state and local governments. As Texas debates the impact of increasing private and public insurance premiums and out-of-pocket medical costs, and the effect of caring for uninsured Texans, it is critical to understand the economics of health care. That is why I asked my staff to compile statistics.

The data we collected also was used by Camille Miller, president of the Texas Institute for Health Policy Research (TIHPR). The TIHPR conducted seminars for health care providers who were looking for ways to help communities spend health care dollars more effectively.

In this study, we identified money spent for private health care and for government programs. We also estimated spending by counties and regions of the state and adjusted the health care data to eliminate duplication and count each dollar only once.

We hope this data will help state and local leaders plan for Texas' future health care.

I hope you find this publication useful.

Sincerely,

Carole Keeton Rylander's Signature
Carole Keeton Rylander
Texas Comptroller