Sobering United States Healthcare Statistics

Strategy + Business has two interesting health care articles in the spring issue. The article titled "Does Health Care Have a Future" summarizes points from eight different books. I really think the opening paragraph is telling:

It is no secret that health care in the U.S. is in crisis. Americans share a sense of impending catastrophe, and for good reason. Health care in the United States consumes some $2 trillion per year — 16 percent of the GDP, and four times the expenditure for national defense. Yet U.S. health care’s performance is ranked 15th globally by the World Health Organization; American life expectancy ranks 22nd in the world, and infant mortality ranks 39th. The U.S. spends more on health-care insurance than any other nation, yet 46 million Americans do without — a number that increases every year. The out-of-pocket costs of those who have insurance have nearly tripled in the last six years, as health-care premiums continue to rise at nearly three times the general inflation rate. Unpaid and unpayable health-care bills account for the majority of all personal bankruptcies in the country. (Flower & Knott, 2007)

One of the suggested solutions is to make health care costs and quality more transparent. It cites that those parts of the industry that must really compete for the health care dollar--like plastic surgery and laser eye surgery--generally perform better. It's a valid insight. I may give my opinion on the other article in the business blog as it discusses a retail system.