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Updated: Jul 8, 2026

Drug Repurposing Hypothesis Generation Using the "RE:fine Drugs" System

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Published on: December 11, 2016

Projecting future drug expenditures--2008.

James M Hoffman¹, Nilay D Shah, Lee C Vermeulen

¹Pharmaceutical Department, St. Jude Children's Research Hospital, Memphis, TN, USA.

American Journal of Health-System Pharmacy : AJHP : Official Journal of the American Society of Health-System Pharmacists

|January 25, 2008

Summary

Drug expenditures rose 8.7% in 2006, with clinics showing the fastest growth. Projections for 2008 suggest continued increases, influenced by new drugs, generics, and Medicare Part D.

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Area of Science:

Health Economics
Pharmaceutical Policy
Healthcare Management

Background:

Drug expenditures represent a significant component of healthcare spending.
Understanding trends and influencing factors is crucial for resource allocation and policy development.

Purpose of the Study:

To analyze drug expenditure trends in 2006-2007.
To project drug expenditures by setting for 2008.
To identify factors influencing future drug spending.

Main Methods:

Analysis of historical drug expenditure data.
Trend analysis across different healthcare settings (clinics, hospitals, outpatient).
Identification and discussion of factors impacting drug costs.

Main Results:

Total drug expenditures increased by 8.7% from 2005 to 2006, reaching $275 billion.
Clinic drug expenditures grew by 20.9% (2005-2006) and now exceed hospital spending.
Hospital drug expenditures showed moderate growth (3.8% in 2005-2006, 2.2% YTD 2007).

Conclusions:

Projected 2008 drug expenditure increases: 5-7% (outpatient), 12-14% (clinics), 4-6% (hospitals).
Factors moderating growth include generic drug availability and drug safety concerns.
The impact of Medicare Part D on overall drug expenditures requires further observation.