Healthcare Industry Study
Abstract
Our nation's healthcare system affects not only the well being of our citizens, but the strength of our society as a whole. Healthcare is a critical pillar of the national security framework that affects not only individual health, but also economic efficiency and public confidence. This industry is both complex and fragmented, consisting not only of consumers and producers/providers, but also of a multitude of third party payers that distort the economic efficiency of the market system. The U.S. spends $1.4 trillion annually on healthcare, higher than any other nation, and representing over 14% of Gross Domestic Product (GDP). This paper accesses the utility of this unequalled level of expenditure through measures of access, cost and quality. While the quality of the U.S. healthcare system is unparalleled in the areas of acute intervention, pharmaceuticals, medical education, and research and development, the provision of routine preventative care is less than optimal. When combined with the inability of a large percentage of the population to access these routine services, we conclude that the demonstrated outcomes of the U.S. healthcare system do not reflect the high cost. Improvements are necessary to provide more equitable access and to attain business efficiencies that will help control costs. These efficiencies can be gained through better industry standardization; especially in licensing and administration. Such efficiencies will require an enhanced government role independent of shortterm parochialism. The Government can lead the way to improved efficiency and equity in the thriving healthcare market as it encourages the individual lifestyle changes necessary to reverse the alarming and costly trend towards unhealthy personal choices such as poor diets and habits, sedentary levels of physical activity, and high-risk activities.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 2003
- Accession Number
- ADA425311
Entities
People
- Alawi Ba Omar
- Gregory Chasteen
- Mari-josette Campagnone
- Thomas Dee
- Thomas M. Brown
Organizations
- Dwight D. Eisenhower School for National Security and Resource Strategy