In just a few decades the United States has gone from spending about the same that of peer nations to spending almost twice as much on health care, as a percentage of its economy, as other advanced industrialized countries. This is prompting people to ask why the dramatic change? After reviewing the data, it appears that more is done for patients during hospital stays and doctor visits, they’re charged more per service or both.
Below is an article from nytimes.com that evaluates the increase in spending that the United States spends on healthcare versus other advanced industrialized countries. After reading the article give us a call at SpendBridge so we can help you manage the healthcare costs at your facility that will allow you to provide the best care for your patients.
Source: nytimes.com | Re-Post SpendBridge 1/15/2018
The United States spends almost twice as much on health care, as a percentage of its economy, as other advanced industrialized countries — totaling $3.3 trillion, or 17.9 percent of gross domestic product in 2016.
But a few decades ago American health care spending was much closer to that of peer nations.
A large part of the answer can be found in the title of a 2003 paper in Health Affairs by the Princeton University health economist Uwe Reinhardt: “It’s the prices, stupid.”
The study, also written by Gerard Anderson, Peter Hussey, and Varduhi Petrosyan, found that people in the United States typically use about the same amount of health care as people in other wealthy countries do, but pay a lot more for it.
Ashish Jha, a physician with the Harvard T.H. Chan School of Public Health and the director of the Harvard Global Health Institute, studies how health systems from various countries compare in terms of prices and health care use. “What was true in 2003 remains so today,” he said. “The U.S. just isn’t that different from other developed countries in how much health care we use. It is very different in how much we pay for it.”