At a recent July 4 family gathering, we got on the topic of why health care is so expensive. It's a little off-topic from the focus of this blog, but I'll share my opinion on this.
The simple answer I would give is too much government intervention.
First, doctors have increasingly high costs imposed on them through frivolous lawsuits. Almost half of lawsuits brought against doctors are estimated to be frivolous. Doctors have been sued for health problems in patients they've never seen; making (successful) life-saving decisions during surgery without the patient's consent; and for a variety of discrimination-related claims lacking any evidence.
As a result, doctors have to pay increasingly high malpractice insurance premiums, sometimes 6 figures per year. These costs are passed on to the patients.
Second, doctors and hospitals face a tremendous regulatory burden. This article estimates doctors spend 22% of their time on paperwork not directly to their patients' medical care. The alternative to working at a lower hourly rate is to charge patients more. Apart from necessary medical records, doctors should be able to focus their efforts in the care of patients.
Third, there is a government-granted monopoly on the provision of healthcare. To practice medicine, you must be a member of the AMA and a graduate from an accredited medical school. Of course, we want our doctors to be of the highest quality, and current requirements make it likely that only good candidates get through.
However, any monopoly will tend to result in much higher prices, as well as lower quality in the form of worsened customer service. How long do you normally wait for a doctor or hospital visit? How easy is it to contact your doctor at other times with questions? How much time are they willing to give you when you're there?
The alternative to our increasingly socialized healthcare system is to lower or eliminate government intervention in health care. Allow competing medical certifications, with the free market deciding the cost of care based on the qualifications and reviews of the doctor. End the regulatory burden that doctors face. Eliminate frivolous lawsuits, with liability only extending to medical error.
I believe the result would be a much wider array of choices for health care, including many significantly less expensive options, as well as doctors who actually have time for their patients.
Please feel free to chime in with your opinion. I'm always happy to hear from my readers.
The simple answer I would give is too much government intervention.
First, doctors have increasingly high costs imposed on them through frivolous lawsuits. Almost half of lawsuits brought against doctors are estimated to be frivolous. Doctors have been sued for health problems in patients they've never seen; making (successful) life-saving decisions during surgery without the patient's consent; and for a variety of discrimination-related claims lacking any evidence.
As a result, doctors have to pay increasingly high malpractice insurance premiums, sometimes 6 figures per year. These costs are passed on to the patients.
Second, doctors and hospitals face a tremendous regulatory burden. This article estimates doctors spend 22% of their time on paperwork not directly to their patients' medical care. The alternative to working at a lower hourly rate is to charge patients more. Apart from necessary medical records, doctors should be able to focus their efforts in the care of patients.
Third, there is a government-granted monopoly on the provision of healthcare. To practice medicine, you must be a member of the AMA and a graduate from an accredited medical school. Of course, we want our doctors to be of the highest quality, and current requirements make it likely that only good candidates get through.
However, any monopoly will tend to result in much higher prices, as well as lower quality in the form of worsened customer service. How long do you normally wait for a doctor or hospital visit? How easy is it to contact your doctor at other times with questions? How much time are they willing to give you when you're there?
The alternative to our increasingly socialized healthcare system is to lower or eliminate government intervention in health care. Allow competing medical certifications, with the free market deciding the cost of care based on the qualifications and reviews of the doctor. End the regulatory burden that doctors face. Eliminate frivolous lawsuits, with liability only extending to medical error.
I believe the result would be a much wider array of choices for health care, including many significantly less expensive options, as well as doctors who actually have time for their patients.
Please feel free to chime in with your opinion. I'm always happy to hear from my readers.
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