Skip to content
  • About
  • Contact
  • Contribute
  • Book
  • Careers
  • Podcast
  • Recommended
  • Speaking
KevinMD
  • All
  • Physician
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
  • Video
  • All
  • Physician
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
  • Video
    • All
    • Physician
    • Practice
    • Policy
    • Finance
    • Conditions
    • .edu
    • Patient
    • Meds
    • Tech
    • Social
    • Video
    • About
    • Contact
    • Contribute
    • Book
    • Careers
    • Podcast
    • Recommended
    • Speaking
KevinMD
  • All
  • Physician
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
  • Video
    • All
    • Physician
    • Practice
    • Policy
    • Finance
    • Conditions
    • .edu
    • Patient
    • Meds
    • Tech
    • Social
    • Video
    • About
    • Contact
    • Contribute
    • Book
    • Careers
    • Podcast
    • Recommended
    • Speaking
  • About KevinMD | Kevin Pho, MD
  • Be heard on social media’s leading physician voice
  • Contact Kevin
  • Discounted enhanced author page
  • DMCA Policy
  • Establishing, Managing, and Protecting Your Online Reputation: A Social Media Guide for Physicians and Medical Practices
  • Group vs. individual disability insurance for doctors: pros and cons
  • KevinMD influencer opportunities
  • Opinion and commentary by KevinMD
  • Physician burnout speakers to keynote your conference
  • Physician Coaching by KevinMD
  • Physician keynote speaker: Kevin Pho, MD
  • Physician Speaking by KevinMD: a boutique speakers bureau
  • Primary care physician in Nashua, NH | Doctor accepting new patients
  • Privacy Policy
  • Recommended services by KevinMD
  • Terms of Use Agreement
  • Thank you for subscribing to KevinMD
  • Thank you for upgrading to the KevinMD enhanced author page
  • The biggest mistake doctors make when purchasing disability insurance
  • The doctor’s guide to disability insurance: short-term vs. long-term
  • The KevinMD ToolKit
  • Upgrade to the KevinMD enhanced author page
  • Why own-occupation disability insurance is a must for doctors

The critical factors driving up American health costs

Samuel Metz, MD
Policy
January 4, 2013
Share
Tweet
Share

The Bipartisan Policy Report titled “What is Driving US Health Care Spending? America’s Unsustainable Health Care Cost Growth” issued in September lists seven factors increasing American health care costs. The “fiscal cliff” debates include many of these arguments.

While these factors do indeed play roles in American health care, almost all are at work in other industrialized countries, all of whom provide better care to more people for half what we spend. Good intentions aside, the report overlooks critical (and dysfunctional) characteristics of American health care and instead distracts itself with factors never mastered by any country (including ours).

The report was prepared under the direction of former Senate majority leaders Tom Daschle (D-S.D.) and Bill Frist (R-Tenn.), former Senator Pete Domenici (R-N.M.) and former Congressional Budget Office Director Dr. Alice Rivlin. With such participants, the report certainly qualifies as bipartisan, but unfortunately the final product does not qualify as accurate.

Here are the seven factors. They are largely irrelevant in our quest for better care at less cost.

1. Many industrialized countries pay providers on a fee-for-service basis, seemingly rewarding more care rather than better care. Yet their costs are lower and their citizens are healthier.

2. Other countries face aging populations with higher smoking rates and more chronic illnesses than we have. Yet their costs are lower and their citizens are healthier.

3. Other countries face patient demands for the latest therapies. Yet their costs are lower and their citizens are healthier.

4. Other countries do not financially penalize patients seeking care. Yet their costs are lower and their citizens are healthier.

5. Other countries provide patients with no more information about complex health decisions than we do. Yet their costs are lower and their health results are better.

6. Many hospital systems in other countries dominate their markets. Yet their costs are lower and their citizens are healthier.

7. The one exception making us unique is our malpractice costs. Yet defensive medicine costs $55 billion annually, just 0.2% of our $2.6 trillion health care spending.

Thus we face the same challenges every country faces. But American costs are increasing faster and are already twice as high. What are these other countries doing differently? They apply three characteristics missing from American health care:

  • Everyone is included without discrimination against the sick. Unlike other countries, Americans encourage private insurance companies to insure only healthy patients, leaving sicker patients to government programs, charities, or no care at all.
  • Patients can seek care without financial penalty. We are unique in using high deductibles and co-pays to discourage patients from primary care. Although patients in other countries see their physicians more frequently and spend more days in the hospital than we do, their costs are less and their citizens are healthier.
  • Financing is provided exclusively by publicly accountable, transparent, not-for-profit agencies. Although providers make a profit in many countries, we are the only nation in which financing agencies make a profit.

No country, including ours, has ever resolved the Bipartisan Policy Report factors. Yet our health care costs are the world’s highest. Although the report is bipartisan, it misses the critical factors driving up American health care costs. And unfortunately so does the Affordable Care Act, another valiant but futile effort at addressing our health care crisis. If the US wants a health care system that provides better care to more people for less money, we should take our lessons from countries already doing so, not from think tanks speculating on economic theories never applied successfully anywhere.

ADVERTISEMENT

Successful systems around the world can teach us proven methods of containing costs while providing better care, but if only we choose to learn from them. These policy makers chose to ignore these lessons. The rest of us should not.

Samuel Metz is an anesthesiologist.

Prev

The physicians of today have given up their unique soul

January 4, 2013 Kevin 45
…
Next

Will doctors recommend health apps to patients?

January 4, 2013 Kevin 9
…

Tagged as: Hospital-Based Medicine, Public Health & Policy

< Previous Post
The physicians of today have given up their unique soul
Next Post >
Will doctors recommend health apps to patients?

ADVERTISEMENT

More by Samuel Metz, MD

  • Do we really have the world’s best cancer care?

    Samuel Metz, MD

More in Policy

  • Value-based care data gap: Why metrics fail to reach the bedside

    Ido Zamberg, MD
  • Flexible health care funding: Moving beyond disease eradication

    Selena Kattick
  • Immigration policy and child health: a medical student’s perspective

    Adam Zbib
  • Executive order on homelessness: Why forced treatment fails

    Gary McMurtrie
  • Immigrant caregiver burden: the hidden cost of the five-year Medicaid wait

    Ranjita Suresh
  • Employer-sponsored DPC: Why private equity is winning the infrastructure race

    Dana Y. Lujan, MBA
  • Most Popular

  • Past Week

    • Missed diagnosis visceral leishmaniasis: a tragedy of note bloat

      Arthur Lazarus, MD, MBA | Conditions
    • Sabbaticals provide a critical lifeline for sustainable medical careers [PODCAST]

      The Podcast by KevinMD | Podcast
    • Why Medicare must cover atrial fibrillation screening to prevent strokes

      Radhesh K. Gupta | Conditions
    • Menstrual health in medicine: Addressing the gender gap in care

      Cynthia Kumaran | Conditions
    • Beyond Flexner: Why we must rethink medical training reform

      Ravi Agarwala, MD | Education
    • Medical bankruptcy: the hidden cost of U.S. health care

      Richard A. Lawhern, PhD | Conditions
  • Past 6 Months

    • Missed diagnosis visceral leishmaniasis: a tragedy of note bloat

      Arthur Lazarus, MD, MBA | Conditions
    • Alex Pretti: a physician’s open letter defending his legacy

      Mousson Berrouet, DO | Physician
    • Health care as a human right vs. commodity: Resolving the paradox

      Timothy Lesaca, MD | Physician
    • The American Board of Internal Medicine maintenance of certification lawsuit: What physicians need to know

      Brian Hudes, MD | Physician
    • Why voicemail in outpatient care is failing patients and staff

      Dan Ouellet | Tech
    • AI-enabled clinical data abstraction: a nurse’s perspective

      Pamela Ashenfelter, RN | Tech
  • Recent Posts

    • Beyond Flexner: Why we must rethink medical training reform

      Ravi Agarwala, MD | Education
    • Rural emergency medicine in New Mexico: a physician’s firsthand account

      Sarah Bridge, MD | Physician
    • Trauma reactivation: Why news headlines trigger past abuse

      Barbara Sparacino, MD | Conditions
    • Ambiguous billing rules threaten every doctor in practice [PODCAST]

      The Podcast by KevinMD | Podcast
    • Deprescribing in health care: Why less medication can be more

      American Medical Association & John Whyte, MD, MPH | Meds
    • What the folinic acid retraction means for autism treatment

      Timothy Lesaca, MD | Physician

Subscribe to KevinMD and never miss a story!

Get free updates delivered free to your inbox.


Find jobs at
Careers by KevinMD.com

Search thousands of physician, PA, NP, and CRNA jobs now.

Learn more

View 3 Comments >

Founded in 2004 by Kevin Pho, MD, KevinMD.com is the web’s leading platform where physicians, advanced practitioners, nurses, medical students, and patients share their insight and tell their stories.

Social

  • Like on Facebook
  • Follow on Twitter
  • Connect on Linkedin
  • Subscribe on Youtube
  • Instagram

ADVERTISEMENT

ADVERTISEMENT

  • Most Popular

  • Past Week

    • Missed diagnosis visceral leishmaniasis: a tragedy of note bloat

      Arthur Lazarus, MD, MBA | Conditions
    • Sabbaticals provide a critical lifeline for sustainable medical careers [PODCAST]

      The Podcast by KevinMD | Podcast
    • Why Medicare must cover atrial fibrillation screening to prevent strokes

      Radhesh K. Gupta | Conditions
    • Menstrual health in medicine: Addressing the gender gap in care

      Cynthia Kumaran | Conditions
    • Beyond Flexner: Why we must rethink medical training reform

      Ravi Agarwala, MD | Education
    • Medical bankruptcy: the hidden cost of U.S. health care

      Richard A. Lawhern, PhD | Conditions
  • Past 6 Months

    • Missed diagnosis visceral leishmaniasis: a tragedy of note bloat

      Arthur Lazarus, MD, MBA | Conditions
    • Alex Pretti: a physician’s open letter defending his legacy

      Mousson Berrouet, DO | Physician
    • Health care as a human right vs. commodity: Resolving the paradox

      Timothy Lesaca, MD | Physician
    • The American Board of Internal Medicine maintenance of certification lawsuit: What physicians need to know

      Brian Hudes, MD | Physician
    • Why voicemail in outpatient care is failing patients and staff

      Dan Ouellet | Tech
    • AI-enabled clinical data abstraction: a nurse’s perspective

      Pamela Ashenfelter, RN | Tech
  • Recent Posts

    • Beyond Flexner: Why we must rethink medical training reform

      Ravi Agarwala, MD | Education
    • Rural emergency medicine in New Mexico: a physician’s firsthand account

      Sarah Bridge, MD | Physician
    • Trauma reactivation: Why news headlines trigger past abuse

      Barbara Sparacino, MD | Conditions
    • Ambiguous billing rules threaten every doctor in practice [PODCAST]

      The Podcast by KevinMD | Podcast
    • Deprescribing in health care: Why less medication can be more

      American Medical Association & John Whyte, MD, MPH | Meds
    • What the folinic acid retraction means for autism treatment

      Timothy Lesaca, MD | Physician

MedPage Today Professional

An Everyday Health Property Medpage Today

Copyright © 2026 KevinMD.com | Powered by Astra WordPress Theme

  • Terms of Use | Disclaimer
  • Privacy Policy
  • DMCA Policy
All Content © KevinMD, LLC
Site by Outthink Group

The critical factors driving up American health costs
3 comments

Comments are moderated before they are published. Please read the comment policy.

Loading Comments...