Following up on my last conversation about medical and drug industry corruption, today I'd like to look at the impact that this misallocation of time and financial resources has upon the economy, and the healthcare of its citizens. As mentioned last time, total medical spending in the U.S. now exceeds $3.3 trillion a year, according to the Centers for Medicare and Medicaid Services (CMS). Estimates (including estimates from government agencies) of wasted medical and healthcare costs, exceed $750 billion a year to over a trillion dollars a year. Those wasted costs include losses to fraud, unnecessary medical tests or drugs, administrative inefficiency, inefficiently delivered services and “above-market” prices paid for services. So when the question arises how the U.S. can spend so much on healthcare and get comparably little in return, we can look at the quarter or third of total spending that is either simply wasted, or worse, leading to negative health for America.
David A. Pace, CFA
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