Healthcare Costs Soar Under Administrative Burdens

American Government has become the Administrative State.

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The same is true for healthcare – As regulation increases here in America, we increase the spend and workforce of healthcare administrators rather than increasing the physician workforce.

These healthcare administrators cannot do their jobs so they also have assistants and secretaries and all of this administrative bureaucracy requires office space, computers, phones, company cars, and systems that they can input data and other infrastructure support. Many have nice offices. Look at the average size of an exam room, you barely fit an exam table.

This massive expansion of the healthcare bureaucracy is a direct result of the government transforming healthcare from a healing profession into a quasi government bureaucracy as a de-facto administrative agency.

THE ONLY WAY TO REDUCE HEALTHCARE COSTS IS TO REDUCE AND ELIMINATE ADMINISTRATIVE BLOATING THAT IS RESPONSIBLE FOR 1/3^rd OF OUR TOTAL HEALTHCARE COSTS.

Every time you and/or your employer writes a check to pay for healthcare premiums, 1/3^rd of that is for administrative expenses that are increasing and result in more expensive healthcare. Administrators have exponentially increased while Physician growth has remained constant.

According to the graph and based on my own experience as a physician, it was easier to be a doctor and provide better healthcare in 1980 than it is today.

Despite better technology, patient outcomes were better and we still had independent physicians who knew their patients and their families.

Now you have a warmer interaction with your butcher at the deli counter as medicine feels like an experience at the DMV.

Some critics argue that we need a single-payor model. If we ever create a single payor system, the bureaucracy will get even bigger with even less money going to the doctors and other healthcare providers.

Despite massive technological improvements, administrative costs should go down and not up. However, that has not occurred in healthcare. It seems to defy the logic of efficiency and economies of scale and the only reason for that is poorly written administrative polices due to bureaucracy imposed by our government.

We need to Make America Healthy Again by making American Healthcare efficient again.

Medical care should be patient focused where doctors are healers and not COGS in a healthcare factory usually run by a vertically-integrated hospital system that is becoming the largest “private” employer in many states.