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by troupo 917 days ago
No. The largest cost of healthcare in the US is all the admin associated with it.

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OECD Health Statistics data show the U.S. spent $1,055 per person on “governance and health system financing administration” in 2020, compared with the OECD12 average of $193 per person.

A 2021 study by McKinsey estimates hospital administrative costs at $250 billion and clinical services administrative costs at $205 billion, representing 21 percent and 27 percent respectively of 2019 NHE spending in these settings.16 A 2014 study by Himmelstein and colleagues comparing hospital administrative costs for the U.S. and five comparator countries found that the other countries spent 42 percent less than the U.S. on hospital administration.

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https://www.commonwealthfund.org/publications/issue-briefs/2....

1 comments

the per capita health care cost is estimated to be around $11,590 in 2019, per the CDC for the USA.

Your $1,055 in administrative costs is not even close to "The largest cost of healthcare in the US is all the admin associated with it.", in fact it is less than 10%.

I mean, you could try and read the full article.

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Administrative Costs [total] : About 30 Percent

Salary and Wages for Physicians and Nurses: About 15 Percent

Prescription Drugs: About 10 Percent

Medical Machinery and Equipment: Less Than 5 Percent

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Administrative Costs of Insurance: $1,055 per person on “governance and health system financing administration” in 2020, compared with the OECD12 average of $193 per person.

Administrative Costs to Providers: A 2021 study by McKinsey estimates hospital administrative costs at $250 billion and clinical services administrative costs at $205 billion, representing 21 percent and 27 percent respectively of 2019 NHE spending in these settings [aka 48% in sum, troupo]

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and you can try (and fail again) to explain how 10% of medical care cost for admin (your number) is bigger than the other 90%.

The math is not that hard.

Literally in the article: Administrative Costs [total] : About 30 Percent, Administrative Cost yo providers: 48%.

You: no, it's 10%, math is not hard

I see it's hard for you. Good bye