Question

Health Econ Question: How do hospitals and physicians contribute to the rising costs of health care?

Answer 1

Overall Costs of Healthcare

Healthcare costs have risen drastically in the U.S. over the past several decades. According to a March 2019 study published in the Journal of the American Medical Association (JAMA), healthcare spending in the U.S. rose nearly a trillion dollars between 1996 and 2015.

The study reported that healthcare spending in the U.S. during 2017 was $3.5 trillion, or about $11,000 per person. By 2027, these costs are expected to climb to $6 trillion—roughly $17,000 per person.

According to the study, spending can be broken down into 11 categories:

Hospital care (32.7%)

• Physician services (15.6%)
• Other personal health care costs (15.1%)
• Prescription drugs (9.5%)
• The net cost of health insurance (6.6%)
• Nursing care facilities (4.8%)
• Investment spending (4.8%)
• Clinical services (4.3%)
• Home healthcare (2.8%)
• Government public health activities (2.5%)
• Government administration (1.3%

As shown in the data , due to rising fees of hopital staff, there is a increase in the health cost