9 factors that drive healthcare costs
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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