united states health system

Direct Costs (18% GDP) 

• Hospital care (~6%)

• Physician and clinical services (~3.5%)

• Prescription drugs (~2%)

• Nursing care facilities and home health (~1%) 

• Administrative costs (~1.5%) 

Indirect Costs (not typically included in the GDP)

lost productivity

unpaid

disability payments

premature death

absenteeism and presenteeism

lost productivity

When people have the inability to work (losing money in total), economic costs

disability payments

• Societal costs

• No longer producing income for the US, now getting paid for disability

unpaid

• Work performed without formal compensation 

• Caregivers, taken care of for free- time taken away from someone who could be working a paid job boosting economy

premature death

• Loss of income 

• 18/21-65 years= productive years 

• Loss potential for economic growth for the community

absenteeism

• Absenteeism: Costs from employees being absent or present due to health issues 

• Ex: teachers during covid in public schools

presenteeism

Being present at work but underperforming at work

Long term disability and chronic illness

• Ongoing issues that might reduce an individual's ability to work consistently/pramface 

• Long term economic effects that may or may not be avoidable 

Mental Health and Stress RElated conditions

• Struggling with mental health/stress can hinder work productivity, present at work all impacts the economy 

• 14.8% of US population lived in poverty

• Medicaid and affordable care act tried to bridge the gap of public and private health insurance 

• But people still don't have access  

medicaid is for

people who fall under the poverty line

medicare is for

people ages 65 and up

No central governing agency and little integration and coordination

• Can be public, private, etc.- no national healthcare system 

• Big difference between us and other countries 

dominate healthcare financing

private insurnace

50% of americans have ____ healthcare

private

weaknesses of US health system

• Fragmented system with unequal access 

• High administrative cost 

• Complex payment system

Multiple subsystems

• managed care (HMO, PPO) military, VA, Indian Health Service, vulnerable populations 

How does the method of financing healthcare impact affordability and sustainability

• Funded via private insurance, Medicare, Medicaid, out-of-pocket costs 

  • 50% of americans have employer based plans 

  • Public programs provide surface level care 

  • When they don't have it out of pocket= very expensive

Insurance premiums, co-pays, and deductibles

strain affordability

How does the US measure quality of healthcare services

Metrics 

• Life expectancy, infant mortality, patient satisfaction, disease burden

No central governing agency

• which leads to high costs and mixed outcomes 

ACA and reforms seek to address some issues

• inequities and high costs remains