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Social institutions and economic decision making.

D M Brown

    Hospital Progress
    |January 1, 1978
    PubMed
    Summary

    The U.S. healthcare system is inefficient, spending more for stagnant results. To ensure a functional voluntary system, new incentives for all stakeholders are essential.

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    Area of Science:

    • Health Economics
    • Healthcare Policy

    Background:

    • The current U.S. healthcare system demonstrates escalating costs without proportional improvements in output.
    • This trend raises concerns about the long-term sustainability of voluntary healthcare models.

    Purpose of the Study:

    • To identify the irrationality in the current U.S. healthcare system's cost-output ratio.
    • To advocate for the necessity of stakeholder incentives for system viability.

    Main Methods:

    • Analysis of healthcare spending and output metrics.
    • Review of existing incentive structures for healthcare stakeholders.

    Main Results:

    • The U.S. healthcare system exhibits a pattern of increasing expenditure with stagnant or diminishing returns.
    • Current incentive structures are insufficient to curb rising costs or improve overall system efficiency.

    Conclusions:

    • The current trajectory of the U.S. healthcare system is economically irrational and unsustainable.
    • Implementing targeted incentives for insurers, patients, physicians, hospitals, and government is crucial for the survival of a voluntary healthcare system.

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