Table 1

Prescription Drug Expenditures and Growth by Sectora

Sector2016 Expenditures ($ Millions)Percent of Total ExpendituresPercent Change From 2015
Retail pharmacies217,42848.54.7
Mail-order pharmacies103,17123.06.7
Nonfederal hospitals34,4617.73.3
Long-term care16,5413.70.3
Staff-model HMOs5,0841.16.5
Home healthcare3,6720.82.0
Federal facilities2,8900.67.9
  • a Retail pharmacies include standalone chain and independent stores, as well as mass merchandisers and food and convenience stores with a licensed pharmacy. Mail-order pharmacies include licensed mail service pharmacies, including both private-sector and federal facilities. Clinics include physician offices and outpatient clinics, including general, family medicine, and specialty clinics covering oncology, nephrology, dialysis, family planning, orthopedics, and urgent care centers. Nonfederal hospitals include all non-federally-owned facilities licensed as hospitals, including inpatient treatment and rehabilitation facilities, in addition to general and specialty acute care institutions. Long-term care includes nursing homes and residential care facilities. Staff-model health maintenance organizations (HMOs) include closed-panel HMO pharmacies and hospitals, union clinics and pharmacies, and workers’ compensation clinics. Home healthcare includes licensed home health organizations and visiting nurse entities. Federal facilities include Public Health Service and other federal hospitals, and U.S. ships at sea (Veteran’s Health Administration facilities are normally included in the federal facility sector, but data on expenditures were not available after December 31, 2013). Other covers a variety of otherwise unclassified government accounts, as well as entities such as jails, prisons, and veterinary hospitals and clinics.