With the current functioning of the health sector industries, they will absorb every dollar that the population is willing to make available. The continual escalation in health spending will not be curbed until the consumers get ‘sick’ of feeding the health sector’s seemingly insatiable appetite for money and take action.
In spending over 17% of it’s Gross Domestic Product (GDP) on health care services, the
As a percentage of GDP’s, developing countries spend about 7% whlie other developed countries spend about 11% --
CATEGORY | 2010 | 2019 | ||
| ($ Millions) | % of Total | ($ Millions) | %of Total |
Total Expenditures | $2,569.6 | 100% | $4,482.7 | 100% |
% of GDP | 17.3% |
| 19.3% |
|
Per Capita Expenses | $8,289.9 |
| $13,387.2 |
|
Hospital Care | $788.9 | 32.9% | $1,374.5 | 33.0% |
Professional Care | $797.2 | 33.3% | $1,370.7 | 33.0% |
Nursing Home & Home Care | $226.4 | 9.4% | $399.7 | 9.6% |
Prescription Drugs (Retail) | $260.1 | 10.9% | $457.8 | 11.0% |
Other Medical Products | $69.1 | 2.9% | $106.4 | 2.6% |
Most economists feel that with the
While some health insurance reforms are needed, the primary focus -- with a combination of actions at both the state and federal levels -- needs to address the delivery of services where 90% of the costs are generated. There are three fundamental and inter-related aspects that need to be balanced:
1. access - making programs and services geographically available on a timely
basis with adequate levels of financing,
2. quality - assuring delivery of evidence-based services including the
associated outcome effectiveness measurements, and
3. costs - based on reasonable transparent prices for value-added products,
programs, and services.
Health reform proposals focusing primarily on only on the access to health insurance will have limited impact on the cost of delivery of the health care services. A more comprehensive and cost-effective approach would respond to both the health and health care needs of the people with accessible quality services.
Private sector cost control initiatives are essential because the health sector is so and complex and expansive that government actions alone will have limited impact. Some federal legislation is needed to set standards for payments (e.g. Medicare). However, legislation also needs to be put in place on a state-by-state basis where issues like Health Exchanges and Medical Practice Acts can be addressed.
The entrenched health sector special interests - primarily health care providers, health insurers, and pharmaceutical companies -- have become problematic for the economy, in general, and for health reform, in particular. The undo influence of these special interests needs to be checked and redirected through both the private and public sectors. However, the public sector elected 'representatives' seem to be responding to the special interests - not the actual needs of the people.
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