Monday, June 22, 2009

Why does healthcare cost more in some cities?

I just finished reading a fascinating article from the New Yorker about healthcare spending disparities across the US. I found this article while reading a story form Business Week about President Obama's challenge in working with doctor's to lower costs. I have grown more and more interested in anything related to healthcare policy and spending since I started working at Regence Blue Shield. I've heard a lot about what is wrong with the system, but I think this article does a great job of laying out the facts and really investigating what is at the core of the problem.

This article primarily focuses on what doctors and hospitals are doing right and wrong and to be fair I have to mention that there are many players in the system that are to blame (government, pharmaceuticals, certain insurance companies, unhealthy lifestyles...). The core of the argument in the article is that when doctors focus on the business aspect (making the most money possible) they drive costs up, quality goes down, and service to the patient is poor. Certain models like the Mayo Clinic are shining examples of putting patients first and implementing preventative measures, which drives costs down and quality goes up.

Time some time to read the article and write a comment on this blog about your reaction or your perspective.

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