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9 factors that drive healthcare costs

Article

From the State Health Care Cost Containment Commission

  • Physician, facility, and drug costs are high.

  • Americans use a higher proportion of expensive medicine.

  • Care is fragmented and uncoordinated.

  • Consumers do not weigh costs when making health care decisions.

  • The traditional fee-for-service payment model promotes fragmentation and higher spending.

  • Administrative expenses are high.

  • Unhealthy lifestyle choices and behaviors add to health burdens.

  • End-of-life care in the United States is expensive.

  • Provider consolidation and market power.

 

Source: The Miller Center, University of Virginia, prepared for the State Health Care Cost Containment Commission, January 2014

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