Medical image of the month: complexity of healthcare payment

Abstract

It is generally agreed that healthcare costs are too high in the US. In ground-breaking work published in 1991, Woolhandler and Himmelstein (1) found that US administrative health care costs increased 37% between 1983 and 1987. They estimated these costs accounted for nearly a quarter of all health care expenditures. Himmelstein now estimates that administrative costs may now account for up to 40% of healthcare costs (2). The cartoon shows one provider and one patient but 8 healthcare administrators. This payment system is overly complex involving multiple steps and personnel, with each administrator “dipping their beaks” adding to healthcare costs.

Keywords

• healthcare payment
• payment
• complexity
• administrative costs
• woolhandler
• himmelstein
• reimbursement
• cartoon
• medical administration growth
• administrative efficiency