Health care by the numbers
From the Minneapolis Star Tribune, February 25, 2007:
$477 billion — Amount that the United States overpays each year on health care vs. what would be expected if the country fit the spending pattern of other advanced countries, which translates into $1,645 per person every year, according to McKinsey Global Institute, the independent research arm of the consulting firm.
4% — Amount of the $477 billion accounted for by costs for malpractice insurance and defensive medicine practices above those incurred in other countries, according to McKinsey.
31% — Amount of that $477 billion that is accounted for by inefficiencies and complexities in our health care system's operations and structure, compared to the health care systems of other advanced countries.
21% — Amount of that $477 billion that is accounted for by higher costs of medical labor, primarily the incomes of doctors, nurses and medical technicians, even after accounting for malpractice insurance costs paid by doctors and other medical workers.
45% — Amount of American health care spending paid for by all levels of government, according to a study published by the Centers for Medicare and Medicaid Services.
Compiled by Jonathan Gaw.
$477 billion — Amount that the United States overpays each year on health care vs. what would be expected if the country fit the spending pattern of other advanced countries, which translates into $1,645 per person every year, according to McKinsey Global Institute, the independent research arm of the consulting firm.
4% — Amount of the $477 billion accounted for by costs for malpractice insurance and defensive medicine practices above those incurred in other countries, according to McKinsey.
31% — Amount of that $477 billion that is accounted for by inefficiencies and complexities in our health care system's operations and structure, compared to the health care systems of other advanced countries.
21% — Amount of that $477 billion that is accounted for by higher costs of medical labor, primarily the incomes of doctors, nurses and medical technicians, even after accounting for malpractice insurance costs paid by doctors and other medical workers.
45% — Amount of American health care spending paid for by all levels of government, according to a study published by the Centers for Medicare and Medicaid Services.
Compiled by Jonathan Gaw.
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In a recent commentary on my blog http://minnesotacentral.blogspot.com/2007/03/is-norm-coleman-going-gutknecht-or.html, I used the same McKinsey report to note how excess administrative costs could be eliminated to provide medical care for the uninsured. The blog commentary was prompted by Sen. Coleman's offerings that have little to do with addressing the health care problem, but just supply good campaign talkiing points ... and to prove my point, Coleman has penned an OpEd piece in yesterday's Red Wing newspaper.
Here's an excerpt from my blog :
Last month, McKinsey and Company issued a report on the cost of Health Care in the United States. The analysis attributed some of the cost problems in that we spend $98 billion a year in excess administrative costs ( such as marketing – think of those commercials for Restless Leg Syndrome.) Further, McKinsey estimates excess drug costs to be $66 billion a year. Interestingly, the report estimates the cost of providing full medical care to all of America’s uninsured at $77 billion a year. Thus, if the Healthcare Industry could be squeezed of waste and excess spending, the uninsured problem could be solved.
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