Why is Healthcare not a "normal" Service? Because the supplier sets a price, typically unknown to the consumer- Not price Transparent The Need for Healthcare Varies- 20% of Americans use 80% of Healthcare Dollars Healthcare has indirect costs
Healthcare us bit normal because the need for HC varies tremendously. (20% of all American use 80% of the HC dollars) AND the cost of HC is very high. Healthcare has indirect costs. Third party payers (private or public insurers) and there is a difference in providers with varying prices.
a. Major contributors to increases in healthcare expenditures Uninsured and underinsured; Spiral effect New diagnostic and treatment technology. Growth in older population. Labor intensity (14.3 million workers) Fee for service payment Fraud and abuse Malpractice
Healthcare Financing
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