Is increased administration killing the U.S. healthcare system? A question that deserves some consideration based on this chart from the Bureau of Labor Statistics, detailing the physician growth between 1970 and 2009 compared to the number of administrators that were added during the same period. This article is not going to be very popular among many in the current healthcare system which will include Medical Administrators, Insurance Companies, Attorneys, Risk Managers, Regulatory Agencies, Finance Directors, Pharmaceutical Companies, Federal and State Governments, and Investors. There is quite an entourage that represents the layer upon layer of admin, red tape, and confusion in a system that is driven by capital and massive amounts of it.
Health Care Expenditures in the United States are higher than in any country in the world. In 2015 U.S. health care spending increased 5.8% reaching $3.2 trillion or $9,990.00 for every person living in the U.S. That is 17.8% of the United Stated GNP. Compare that to other countries with Australia 9.4%, Canada 10.4%, China 5.5%, France 11.5%, Germany 11.3%, Israel 7.8%, Italy 9.2%, Japan 10.2%, and the United Kingdom 9.1%. These are just a few but it’s obvious that we have some issues to address. It’s no wonder that the current Congress hit a brick wall in an attempt to fix some of the major problems.
This article welcomes input from anyone within the healthcare industry to explain the “Why’s?” of our current situation. A simple review of this chart which showcases such an astronomical disparity between the front line doctors and nurses taking care of those that need medical attention, to the overwhelming number of support people, administrators, executives, and everyone that rarely sit by a bedside or make emergency visits in the middle of the night. Anytime the number of people actually providing the service (doctors and nurses) pales in comparison to the people overseeing the care or facility, something is definitely wrong. We joke sometimes about State construction crews with 6 guys all looking on and 1 guy actually using a shovel. It would seem the same holds true for our current health care system.
We call upon sound thinking individuals everywhere to put the same focus and passion towards fixing this $3.2 trillion problem, as they do to trying to find a cure for cancer. Perhaps we will all be better off along the way if they will. The day that cures and helping people replace profits and ROI, is the day that we may find a solution.