Study: Health care begins to feel economic impact

Higher oil prices, a weak U.S. dollar and other factors are increasing the cost of raw materials used for health care products, according to a recent study.

However, the trade association representing medical product distributors, which produced the report, and officials with two health-care facilities in Houston said so far the price increases haven’t trickled down to patient costs.


Andrew E. Van Ostrand, vice president of policy and research for the Alexandria, Va.-based Health Industry Distributors Association, said there are other factors that also play a role in the higher prices, such as a rising demand for commodities in the developing world, transportation costs, shifting international tax policies and increasing overseas productions.

Rising oil prices affect the cost of goods made from petroleum-based materials such as plastics, says the report called Navigating the Perfect Storm: Understanding the Steep Rise in Supply Chain Commodity Costs.

That cost also impacts the price of natural latex rubber, which is affected by the demand for man-made rubber. Also, the production price for steel