Saturday, August 01, 2009



Compared to other leading nations, the US spends vastly more per head on healthcare, while often getting worse outcomes. Despite these high and rising costs, which have set the nation on course for bankruptcy, the US lags behind other countries on measures such as life expectancy at birth (see graph) and infant mortality.

People who have health insurance get excessive medical interventions, escalating costs so that tens of millions can't afford it. Those left uninsured have minimal access to healthcare, and are likely to contribute significantly to the country's relatively poor health outcomes. Even the insured could be sent to an earlier grave by risky interventions they don't need.

Research at the Dartmouth School of Medicine in New Hampshire shows how high-spending regions of the country are driving the spiralling costs. Insurers and the government pay set fees for each medical intervention performed. In some regions, doctors in institutions that are competing to become "centres of excellence" in high-paying fields may use unnecessary diagnostic tests, and surgeons often perform expensive procedures when cheap drugs may be a better option.






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