Healthcare Costs Are Too Low - $4.5 Trillion Per Year is Not Enough

Healthcare Costs Are Too Low - $4.5 Trillion Per Year is Not Enough

Hospital Systems make up the largest segment of total US healthcare costs at 30%. That's $1.35 trillion per year.

Sixty percent of hospital system costs are labor costs. That's $810 billion per year. That's almost as much as the budget for the Department of Defense. However, it is not enough.

Some of the healthcare workers at hospital systems include:
1) Doctors: 1 million total with an average wage of $352K per year.
2) Nurses: 4.7 million total with an average wage of $83K per year.
3) Physical Therapists: 576 thousand total with an average wage of $98K per year.
4) Medical Billers: 135 thousand total with an average wage of $47K per year.

The Government and Corporations are major funders of healthcare and they pay a lot of money for services other than healthcare.

The Government pays employees at the nuclear weapon lab at Los Alamos $113K per year on average. Surely, healthcare workers are just as important.

Corporations pay corporate attorneys very high fees. A partner at the largest corporate law firm in America is paid $306K per year on average. Surely, healthcare workers are just as important as corporate attorneys.

The money to pay for higher healthcare costs could come from:
1) Higher Taxes: The top income tax rate in the 1960s was 91%. In the 1980s it was 50%. Today it is less than 40%. It could be raised to pay for higher healthcare costs.
2) Corporate Profits: Corporate profits in the 1980s were 10%. Today they are 17%--a 70% increase. Money from high corporate profits could be used to pay for higher healthcare costs.

Perhaps the dysfunctional US Healthcare System just needs MORE spending, not Less to make it better.

Sources:
https://www.statista.com/topics/1244/....

https://www.zippia.com/medical-biller...

https://weatherbyhealthcare.com/blog/....

https://www.incrediblehealth.com/blog....

https://money.usnews.com/careers/best....

https://www.ziprecruiter.com/Salaries...

https://www.forbes.com/advisor/educat....

https://www.healthsystemtracker.org/c...

https://www.cms.gov/data-research/sta....

https://www.aha.org/costsofcaring#:~:....

https://www.defense.gov/News/News-Sto...

https://losalamosreporter.com/2024/02...

https://en.wikipedia.org/wiki/List_of...

https://www.zippia.com/kirkland-ellis...

https://www.statista.com/chart/16782/...

https://www.federalreserve.gov/econre...

https://www.statista.com/statistics/2....

AHealthcareZ is 200+ Healthcare Finance Educational Videos.

💥 BOOK: Check out Dr. Bricker’s Book 16 Lessons in the Business of Healing here: https://www.ahealthcarez.com/healthca...

AHealthcareZ Viewers Include: Employee Benefits Professionals, HR, CFOs, Insurance Brokers, Benefits Consultants, Doctors and Nurses in Leadership Roles, Hospital and Health System Administrators, Health Insurance Carrier and PBM Professionals, Pharma and Med Device Professionals, Academic Professors and Students in Healthcare Administration and Public Health.

90,000+ Views Per Month Across All Platforms.

Visit AHealthcareZ.com to Subscribe to the Healthcare Finance Video Newsletter.