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Decreasing Marginal Utility in Healthcare Series, Part 1 of 3: The High Cost of Healthcare
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In the past few decades, spending on healthcare in the U.S. has increased exponentially, far outpacing healthcare spending increases in comparable, industrialized countries, as well as the growth of overall U.S. GDP. Despite the significant amount of money spent on healthcare in the U.S., the U.S. is consistently ranked average or slightly below average on many "quality of care indicators" compared to other, industrialized countries. These rankings suggest that the U.S. is not receiving sufficient value per dollar spent on the population's healthcare.
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Decreasing Marginal Utility in Healthcare Series, Part 1 of 3: The High Cost of Healthcare
In the past few decades, spending on healthcare in the U.S. has increased exponentially, far outpacing spending increases in comparable, industrialized countries, as well as the growth of overall U.S. GDP. The amount the U.S. spent on healthcare in 2011 accounted for over 17% of the national GDP. Despite the significant amount of money spent on healthcare in the U.S., the U.S. population has not necessarily realized better health outcomes. In fact, some critics remark that the overall health of the U.S. population has arguably declined, despite a rise in healthcare expenditures. Despite the significant amount of money spent on healthcare in the U.S., the U.S. is consistently ranked average or slightly below average on many "quality of care indicators" compared to other, industrialized countries. These health outcomes rankings demonstrate that the U.S. may not be receiving sufficient "value per dollar" spent on the population's healthcare.
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Physician Shortage Series, Part 3 of 3: Shortage of Specialty Physicians
The demand for healthcare services is far outpacing the supply of physicians due in part to the influx of millions of newly insured individuals entering the healthcare marketplace via health insurance marketplaces, the expansion of Medicaid, and greater utilization by an aging baby boomer population. Similar to the primary care physician and surgical shortages, discussed in parts one and two of this three-part series, respectively, the Patient Protection and Affordable Care Act, and its accompanying expansion of Medicaid in many states, may also contribute to the shortage of specialist physicians, particularly in pediatric specialties.
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Tax-Exempt Hospitals Face Increasing Tax Scrutiny
In recent years, nonprofit hospitals have been facing increasing regulatory scrutiny as federal, state, and local/regional taxing authorities are challenging whether some tax-exempt hospitals are providing sufficient charity care to warrant their tax-exempt status. Generally, nonprofit hospitals that qualify for a tax-exempt status are excused from paying most income taxes, property taxes, and other taxes. In return, these hospitals are expected to provide a charitable benefit to the community in which they serve, including, for example, charity care for the poor.
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Retail Clinics and Health Systems Coordinate Care
With the anticipated influx of newly insured patients under the Affordable Care Act, retail clinics may offer overburdened hospitals and primary care providers much needed relief. Retail clinics offer non-emergency services, e.g., health screenings, vaccinations, and physical exams-to walk-in patients, for set prices, regardless of the patient's insurance status. Although "traditional" healthcare providers, historically, have been reluctant to partner with retail clinics, new incentives to coordinate care set forth in the ACA have recently encouraged major health systems to enter into affiliation agreements with retail clinics.
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