In addition, I've been wondering why American health care performs so poorly against other health care systems worldwide. In other countries, they spend a fraction of what we spend on health care, but their health outcomes are usually much better than ours. Why does our health system do so poorly with all the money we put in?
I think I've finally found an answer, and it has almost nothing to do with malpractice lawsuits, greedy insurance companies, or "socialized medicine" or lack thereof. The problem is, unfortunately, doctors that have become businessmen (and women). Doctors make money on tests, surgeries, procedures, referrals, and so forth. It is in their interests to maximize the use of health care, which drives up total costs and, since all medical procedures have risks, this actually makes for poorer health outcomes. Or so this article (byAtul Gawande) claims. Go read it. Most interesting thing I've ever read about the health care cost problem.
A snippet from the conclusion:
When you look across the spectrum from Grand Junction to McAllen—and the almost threefold difference in the costs of care—you come to realize that we are witnessing a battle for the soul of American medicine. Somewhere in the United States at this moment, a patient with chest pain, or a tumor, or a cough is seeing a doctor. And the damning question we have to ask is whether the doctor is set up to meet the needs of the patient, first and foremost, or to maximize revenue.
There is no insurance system that will make the two aims match perfectly. But having a system that does so much to misalign them has proved disastrous. As economists have often pointed out, we pay doctors for quantity, not quality. As they point out less often, we also pay them as individuals, rather than as members of a team working together for their patients. Both practices have made for serious problems.
Providing health care is like building a house. The task requires experts, expensive equipment and materials, and a huge amount of coordination. Imagine that, instead of paying a contractor to pull a team together and keep them on track, you paid an electrician for every outlet he recommends, a plumber for every faucet, and a carpenter for every cabinet. Would you be surprised if you got a house with a thousand outlets, faucets, and cabinets, at three times the cost you expected, and the whole thing fell apart a couple of years later? Getting the country’s best electrician on the job (he trained at Harvard, somebody tells you) isn’t going to solve this problem. Nor will changing the person who writes him the check.





















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