The Kaiser Foundation recently said that Medicare spent 11 percent of its annual dollars on fees from doctors, so where is the other 90 percent going?
Insurance carriers are trying to merge and so are hospital systems in NJ, and the recent merger of Robert Wood Johnson and Barnabus systems is bound to hit us in the pocketbook.
The hospitals claim they need to be larger to defend themselves against the insurers and visa versa, and we, the poor patient pay more for what seems like services that should cost much less. With all the supposed reforms, and the screening tests that have been eliminated, why did those costs go up?
Dr. Eifrig believes, based on a chart he shared that administration makes up 25% of all hospital expenditures, or in other words, 1 out of four of your healthcare dollars is going to administration rather than for caring for you. What is even more maddening is that many administrators are making more than the doctors who provide the care.
Is something rotten in America’s healthcare industry; check this article out and then decide.
Dr. Eifrig: One chart that explains what”™s wrong with medicine today
From Dr. David Eifrig, MD, MBA in Retirement Millionaire Daily:
Never forget”¦ the medical industry is Big Business.
Behind every doctor is an administrator”¦ someone whose job it is to go to meetings”¦ type in billing codes”¦ or “œadjust” insurance claims.
In the last 50 years, “œoverhead costs” as a share of health care spending have exploded”¦
Today, administrative costs make up more than 25% of all U.S. hospital expenditures. According to a study published in health care policy journal Health Affairs, $1 out of every $4 that you spend when you go to a hospital goes to bureaucracy instead of patient care.
This chart measures the relative growth in the salaries of physicians and health care administrators from 1970 to 2009. It”™s incredible”¦