By Bob Fabbio, CEO of WhiteGlove Health, Inc. (from Stanford SOCIAL INNOVATION Review)
No country spends money on health care like the US — national health care expenditures amounted to almost 18 percent of the Gross Domestic Product (GDP) in 2009. More money is spent per capita on health care in the US than in any other nation; meanwhile, almost 17 percent of Americans lacked health insurance in 2009, according to the US Census.
Today’s fee-for-service health care system is part of the reason health care costs continue to rise. Why? Because insurance companies continuously drive down reimbursement rates, forcing providers to perform unnecessary visits, procedures, and lab work to survive. Unless something changes, this upward cost trend will continue.