Southwest Journal of Pulmonary and Critical Care (Feb 2020)
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.
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