Understanding the present problem

by admin on 10/10/2018 1:29 PM

The Major Current Problems in HealthCare

The $3 trillion health care industry is the only major segment of the economy that is failing, and there is nothing the employer, insurance carrier or government can do about it.

Health care is the only product or service (outside of public education) that has consistently grown worse over the past 40 years, with decreasing customer (patient) satisfaction. Every other product and service in our economy has improved in quality and grown less expensive over time, with increasing customer satisfaction. 

Health care is the only sector of the economy where prices have been steadily increasing since the end of WWII. Every other sector of the economy is reaping the benefits of Moore’s Law, which states that the cost of digital technology decreases by 50 percent every 18 months. In health care, it is the reverse—less efficient and more costly. For instance, although the Length of Stay (LOS) for delivery of a child has decreased from four or five days to one or two days, the hospital cost has more than doubled. The LOS for gallbladder surgery has decreased from five days to one day, but the hospital cost has doubled. The surgeons’ fees have remained level or even decreased during this time.

Healthcare is totally out of control. Obamacare has made it more out of control. This journal, HPUSA, is our attempt to bring healthcare back into focus. Initial estimates from actuaries are that it will reduce healthcare costs by at least 40% to 50%. We have highlighted examples of this over the years. Welcome to our journey.

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