The deteriorating administrative efficiency of the U.S. health care system

Article Abstract:

The cost of medical care in the United States continues to rise, and efforts to contain this cost have, so far, proven ineffective. While some efforts have focused on the delivery of health care and its attendant fees, there seems to be a burgeoning of administrative costs in the United States. Ironically, attempts to limit the escalation of health care expenditures may well result in hiring more administrators to oversee the problem. In 1983, the portion of US health care expenditures that went to administrative costs was 60 percent higher than in Canada, and 97 percent higher than in Britain. A recent analysis of health care costs in the US shows that between 19.3 and 24.1 percent of health care spending pays for administrative costs. The smaller end of the estimated range represents $96.8 billion a year. In Canada, from 8.4 to 11.1 percent of health care costs go to the same purpose, making the proportion of money spent on health care administration in the US, at the very least, 117 percent higher than in Canada. The rate of growth of administrators themselves is outstripping the growth of physicians. Since 1970, the number of physicians in the US has increased by just over half. In contrast, during this same period the number of health care administrators has increased almost 400 percent. It seems that the ranks of health care workers are being swelled by those who do not actually provide services for patients. At the present rate, by the year 2020, one-half of the health care budget will be allocated to paying those who oversee how the other half actually provides medical care. (Consumer Summary produced by Reliance Medical Information, Inc.)

Evaluation, Health services administrators

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When money is the mission -- the high costs of investor-owned care

Article Abstract:

The notion of a free market does not exist for health care. For-profit hospitals, compared to nonprofit facilities, have been consistently shown to provide higher-priced and lower-quality care. For-profit hospitals largely increase profits rather than decrease costs, and their overall higher costs are primarily due to administration, executive salaries, and other forms of overhead. Medical consumers are unable to assess the quality of health care services, compare facilities, or take their purchase dollars to alternate providers. In the absence of a competitive market, the taxpayers simply pay more money without getting better care.

Hospitals, Editorial, Statistical Data Included, Analysis, Finance, Health care industry, Profits, Corporate profits

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Costs of health care administration in the United States and Canada

Article Abstract:

The US could save $200 billion each year in administrative costs alone by switching to a single-payer, national health insurance system similar to the Canadian system. In 1999, the US spent $294.3 billion on health care administration whereas Canada spent only $9.4 billion. Administrative costs make up 31% of total health care costs in the US, compared to 16.7% in Canada. Actually, Canada only spends 1.3% of its health care budget to administer the national health insurance program. The remainder consists of the administrative costs of the private health insurance market.

Canada, Administration of Public Health Programs, National Health Insurance, Single-payer system (Health care), Single payer system (Health care)

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