By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Healthcare Spending: Administrative Costs out of Control
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Finance > Healthcare Spending: Administrative Costs out of Control
BusinessFinanceHospital AdministrationPolicy & Law

Healthcare Spending: Administrative Costs out of Control

Abby Norman
Abby Norman
Share
3 Min Read
Healthcare Spending
SHARE

Healthcare SpendingWhen we talk about healthcare spending being “out of control” does anyone ever say why?

Healthcare SpendingWhen we talk about healthcare spending being “out of control” does anyone ever say why? The Commonwealth Fund  survey breaks down the costs of healthcare administration – which make up a quarter of all healthcare spending in the U.S.

  • When you look at other developed nation’s healthcare systems, the administrative costs in those countries are well under the 25% mark. England boasts just 16% of spending on administration, and they have nationalized healthcare.
  • In the United States, annual spending per person tops $667 – which is nearly double the next highest country (The Netherlands, which comes in at just $323).
  • If we lowered our spending to match The Netherlands, we’d save $107 million dollars in the first year.

Other findings from The Commonwealth Fund’s survey revealed that, as you might predict, rural hospitals had lower administrative costs as did teaching hospitals, while for-profit hospitals ranked the highest in terms of spending.

A specific reason for the increased administrative costs in the U.S. in relation to other nations is the complexity of our billing system – because there are multiple payers, more staff is needed to process the billing procedures. In countries with single-payers, there’s simply less work to be done – so, less people need to be paid.

More Read

Health Care Buzz Today
As a Physician Do You Have Adequate Financial Expertise?
4 Little Known Health Concerns Facing the Elderly
Doctor/Patient Relationship: Too Much Information, Too Little Communication
Population Health Management [INFOGRAPHIC]

In another study, the projected spending for the US if these trends continues is expected to top $315 billion by 2018- and, in terms of assessing care quality, accessibility and patient satisfaction, studies are consistently showing that just because you’re spending more money doesn’t mean the quality of care is high, too. It’s ironic that so much time, effort and money is involved in making sure that doctors get paid – the topic of physician compensation, too, is a complex one.

So, the challenge of balancing adequately compensating physicians, taking good care of our patients, and reducing administrative costs continues to inform the direction of U.S. Healthcare.

Share This Article
Facebook Copy Link Print
Share
By Abby Norman
My name is Abby Norman and I am a healthcare blogger. With over 10 years of experience in the medical field, I have developed a passion for helping others understand the complexities of healthcare.

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

dental care
Importance of Good Dental Care for Health and Confidence
Dental health Specialties
October 2, 2025
AI in Healthcare
AI in Healthcare: Technology is Transforming the Global Landscape
Global Healthcare Policy & Law Technology
October 1, 2025
Choosing the Right Swimwear for Health and Safety
News
September 30, 2025
sports concussions
Concussion In Sports: How Common They Are And What You Need To Know
Infographics
September 28, 2025

You Might also Like

HiMSS 2014: A Chat with Dr. Devin Jopp, CEO and President of WEDI

March 19, 2014

The PCMH and Home Care Data: An Interview with Melissa McCormack

December 19, 2013
patients come second
Hospital Administration

Patients Come Second: Why Not?

May 9, 2013
chat bubble
BusinesseHealthSocial Media

9 Success Keys: How to Make Your Social Media Truly Engaging

July 31, 2014
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?