A study of health insurance costs in northern Ohio performed by the management consulting firm of Hewitt Associates shows health insurance costs on the rise at an average rate of 16% per employer. The underlying cause seems to be the rising costs of medical care, and in particular the rising costs and increased usage of prescription drugs. It is estimated that the amount Americans spend on prescription drugs has doubled in the past five years.

The effect of the 1997 Balanced Budget Act has made a tremendous impact on hospitals across the country in drastically reducing the amount of Medicare reimbursements.In Alabama, for example, 70 percent of the state's hospitals will operate at a deficit according to a study conducted by Deloitte Consulting for the Alabama Hospital Association.Implemented over a five-year period ending in 2002, the Act is expected to cost U.S. hospitals a total of $50 billion.

The accounting and consulting firm of Moore Stephens Lovelace, P.A. (MS Lovelace) has merged the healthcare division of Moore Stephens Frost (MS Frost) into its own healthcare practice. MS Frost is a fellow Moore Stephens North America, Inc. accounting network member firm from Little Rock, Arkansas.