Last August, the Director of the Congressional Budget Office (CBO), Douglas W. Elmendorf, sent a letter to Congress informing them that most preventative health interventions tend to expand utilization of services with costs that far exceed the eventual cost savings due to avoiding disease or detecting it earlier. In other words, he reported that prevention [...]
Archive for March 2010
Medicare limits reimbursement for healthcare procedures, often below the cost of delivery of these procedures. Not surprisingly, healthcare providers figure out ways to compensate for these price controls. They may, for example, bundle other, profitable services with those that they are forced to provide at a loss to get the overall profit margin to be [...]
Starting with the overarching objective of a healthy, educated, and productive population that is competitive in the global marketplace, what should be done? Let’s work through this piece by piece.
Start with healthy. We are facing an epidemic of chronic disease, driven in part by an epidemic of obesity. The eventual financial costs of diabetes and [...]