Hospital prices have risen faster than costs in virtually any other sector of the U.S. economy, new data shows, highlighting a key driver behind escalating healthcare spending.

The price increases at hospitals have significantly outpaced inflation across most industries, contributing to the ongoing challenge of healthcare affordability for consumers and employers alike.

Healthcare spending has long been a concern for policymakers and families, with hospital costs representing a substantial portion of overall medical expenses. The rapid price growth in this sector stands in contrast to more moderate increases seen elsewhere in the economy.

The findings underscore the complex dynamics affecting healthcare costs, as hospitals face pressures including labor shortages, equipment costs, and regulatory requirements while also wielding significant market power in many regions.