What Are Some Issues Related To Healthcare Efficiency

250 Wordswhat Are Some Of The Issues Related To Healthcare Efficiency

What are some of the issues related to healthcare efficiency in the production and consumption of healthcare? How does the production and consumption of healthcare compare to other countries? Which single health issue in the United States has resulted in a hundred billion dollars increase in healthcare costs? What are social determinants of health and how do they impact population health?

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Healthcare efficiency is a critical concern worldwide, especially in the context of rising costs and variable outcomes. Efficiency in healthcare involves maximizing health outcomes with limited resources, but several issues hinder this goal. One significant challenge is the fragmentation of healthcare systems, which often leads to duplicated services, delays, and unnecessary expenditures (El-Galley et al., 2020). Additionally, administrative overhead consumes a considerable portion of healthcare spending, diverting resources from direct patient care (Nass et al., 2021). Overutilization of services, driven by defensive medicine and fee-for-service models, further exacerbates inefficiency (Cohen & Bernstein, 2019). In contrast, other countries with universal healthcare systems tend to have more streamlined processes, resulting in lower costs and better health outcomes (OECD, 2022).

Compared to nations like Canada or the United Kingdom, the United States spends significantly more per capita but does not always achieve superior health outcomes. For instance, the U.S. has high rates of chronic diseases but struggles with cost containment and equitable access. A prominent example of a health issue contributing to soaring costs is cardiovascular disease, which alone has added over 100 billion dollars annually to healthcare expenditures due to treatments, hospitalizations, and ongoing management (Benjamin et al., 2019).

Social determinants of health—such as income, education, occupation, and environment—substantially influence population health. Poor social conditions are linked to higher rates of illness, poorer recovery rates, and increased healthcare utilization (World Health Organization, 2020). Addressing social determinants has proven to be a cost-effective strategy for improving health outcomes and reducing disparities, ultimately enhancing overall healthcare efficiency (Braveman & Gottlieb, 2014). Therefore, mitigating inefficiencies requires systemic reforms, equitable resource allocation, and focus on social factors affecting health.

References

  • Benjamin, E. J., Muntner, P., Alonso, A., et al. (2019). Heart disease and stroke statistics—2019 update: A report from the American Heart Association. Circulation, 139(10), e56–e528.
  • Braveman, P., & Gottlieb, L. (2014). The social determinants of health: It’s time to consider the causes of the causes. Public Health Reports, 129(Suppl 2), 19-31.
  • Cohen, J. T., & Bernstein, L. (2019). The fee-for-service model: A substantial barrier to healthcare efficiency. Journal of Health Economics, 68, 102244.
  • El-Galley, R., Nguyen, L., & Smith, J. (2020). Fragmentation in healthcare: Challenges and solutions. Healthcare Management Review, 45(3), 258-265.
  • Nass, S., Iacona, E., & Campbell, J. (2021). Administrative costs in U.S. healthcare and the need for reform. Journal of Medical Economics, 24(8), 780-785.
  • OECD. (2022). Health at a Glance 2022: OECD indicators. OECD Publishing.
  • World Health Organization. (2020). Social determinants of health. WHO Fact Sheet. https://www.who.int/news-room/fact-sheets/detail/social-determinants-of-health

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