show me the money

The delivery of healthcare is a business in the United States. Healthcare costs consume 18% of our GDP. This is projected to increase to 20% by 2026. Despite this, our health outcomes rank 37th in the world.

Hospital systems are either for profit, not-for-profit or funded by the government. For profit hospitals earn money for their investors, not-for-profit hospitals earn money which is funneled back into the operating expenses of the hospital, government funded hospitals rely on tax revenues for operating expenses. But the bottom line is the bottom line, regardless of the financial structure of the hospital. 

Why is healthcare so expensive in the United States? 

What can be done to improve this situation which is frankly not sustainable?

Simple answer to a complex question: all stakeholders in the healthcare system need to be less greedy.

Less greed on the part of insurance companies (the CEO of one insurance company earns a reported $15M+ annual total compensation). Less greed on the part of hospital systems (why are C-suite executives earning more than physicians who provide the services from which the hospital profits?). Less greed on the part of pharmaceutical companies (rising drug costs are leading patients to stop taking necessary medications and tap into retirement savings to pay for out-of-pocket treatments). Less greed on the part of physicians (should we really be offering non-evidence based treatments to our patients for cash?). And yes, less greed on the part of patients who insist that their physicians order expensive unnecessary tests.

Everyone needs to do their part.

Together, let’s redirect the focus away from the bottom line and towards improving health outcomes.

Isn’t that what healthcare should be all about?

We really should be #1 not 37th.