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5 Ways Our Healthcare System Is Broken

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The editors at MBA in Healthcare Management Degrees decided to research the topic of:

5 Ways Our Healthcare System Is Broken

1. We Spend Way Too Much on Nothing


- Nearly 1/3 of healthcare spending is wasted
- IMO estimates America loses $750 billion annually on (adjusting for some overlap among categories)
- unnecessary services ($210b - 27.5%)
- inefficient delivery of care ($130b - 17%)
- excess admin costs ($190b - 24.8%)
- inflated prices ($105b - 13.7%)
- prevention failures ($55b - 7.2%)
- fraud ($75 - 9.8%)
- The Defense Dept budgeted $757.8 billion for the Iraq war over 8 years)
- US healthcare prices have grown at double the rate of overall inflation in the past century
- Government deficits are driven almost entirely by healthcare costs
- US healthcare cost per capita is exponentially higher than in other industrialized countries

2. We Don't Pay Doctors According to the Quality of Care Given


- Percentage of doctors who are paid, in part, according to quality of care
- UK - 95%
- Australia - 72%
- US - 30%
- EMR (electronic medical records) increase quality of care and lower costs
- Percentages of EMR penetration
- UK - 89%
- Australia - 79%
- Netherlands - 98%
- US - 28%

3. Many of Us Aren't Getting Care at All


- 25% of the US cannot afford to see a doctor
- 23% skipped a recommended test, treatment or follow-up
- 23% didn't fill prescriptions
- No other countries is close to this income-based rationing
- Canada - only 5% skipped care
- UK - only 2 or 3% skipped care
- 19% of Americans are unable or have serious problems paying medical bills
- no other country is even in the double digits
- Our care is also inconvenient
- Only 30% of Americans report having access to a doctor on the day they need one
- Britons - 41%
- Germans 55%
- Australians - 67%

4. We do Not Treat Chronic Conditions Properly


- Americans have the highest rate of chronic disease (next to Australians)
- One of the biggest issues with chronic disease is coordination of care
- A single "medical home" is imperative for those with chronic illness (ex. diabetes, kidney failure)
- It is critical for providers to have a full picture of
- medical history
- treatments received
- therapies
- We tie with Canadians for the lowest percentage reporting a single "medical home"
- 42% of Americans report paying over $500 out-of-pocket on prescriptions annually
- Higher costs means more people going without medication
- Less medication means less maintenance for chronic illness
- Les maintenance means catastrophic health events
- That same 42% are skipping care, drug doses and doctor's appointments due to cost

5. We are Frequent Victims of Medical, Medication and Lab Errors


- 20% of Americans admit to experiencing malpractice in one year
- the rate is higher for those with chronic illness
- About 75K deaths/year might be prevented if the best care available was the standard
- 18% of hospital patients suffer injury during the course of their care (according to study by Harvard Medical School)
- The US Dept of Health found:
- 1 in 7 Medicare patients suffer injuries during hospital stays
- Adverse events during medical care contributes to 180k deaths/year
- Up to 40 wrong site, wrong side, wrong patients procedures happen weekly in the US
- Medical malpractice causes 9x as many deaths annually as guns do

Sources


- http://www.npr.org/blogs/health/2012/09/07/160752516/how-broken-is-the-u-s-health-care-system-lets-count-the-ways
- http://www.theatlantic.com/health/archive/2012/09/how-the-us-health-care-system-wastes-750-billion-annually/262106/
- http://www.slideshare.net/TMFdfitz/americasbrokenhealthcaresystem-13595396
- http://prospect.org/article/ten-reasons-why-american-health-care-so-bad
- http://www.wilsonlaw.com/Medical-Malpractice-Law-Blog/2012/April/Alarming-Medical-Malpractice-Statistics.aspx
- http://www.justice.org/cps/rde/justice/hs.xsl/8677.htm


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