Monday, April 3, 2017
Healthcare Cost Growth in One Chart
Why have healthcare costs grown so rapidly? One significant factor is the wild growth of administrators employed in the system to comply with the thousands up thousands of government mandates and regulations. A hospital might be able to afford a botched procedure now and then, but they clearly can't afford to have the wrong number of minority employees or use the wrong reimbursement codes.
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Funny how we can interpret data with our own bias intact. I would say that the excess administrators comes from corporate bloat. Layer upon layer of "directors" and "managers" within a corporate system designed to milk everything they can from the front line workers, i.e. the physicians and nurses. A sales team needs "regional managers," and so do massive corporations overseeing multiple hospitals. Non-profit community-based hospitals just need the staff to run the place. Simple, direct, patient-centered. And I haven't even mentioned insurance companies and their bazillion-dollar CEO salaries. I never ever would have said this administrative bloat comes from a need to comply with government regulations: there has always been oversight. That has not changed. What has changed in the last 30 years is corporate venture-capital takeover of our medical field.
ReplyDeleteAnd big pharma also bloats...their administrator structure is thick. Again, sales teams....
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