This study evaluated medical expenses during the last seven months of life in elderly patients aged seventy and over in a rulal town in Okayama prefecture from January 1992 to March 1995, using data from death certificates and medical fee claim records of the elderly. The findings were as follows : 1. The monthly expenses increased toward the last month of life. 2. In the multiple regression model, five independent variables (length of hospital stay, malignant disease, cerebral vascular desease, place of death, services of a visiting nurse) accounted for about 60% of the variance in medical expenses during the last seven-month period. 3. Inflation of medical expenses of the elderly during the premortem period of life was mainly related to long-term hospitalization. 4. In analysing medical expenses, controlling various factors related to long-term hospitalization was found to be important.