We use cookies, including third-party cookies from Google to serve personalized ads through AdSense, to operate this site and understand how it is used. By continuing to browse, you accept this use. See our Privacy Policy and Terms of Use for details, including how to opt out of personalized advertising.
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: Why Our HealthCare Spending Doesn’t Make Sense
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 > Policy & Law > Public Health > Why Our HealthCare Spending Doesn’t Make Sense
BusinessPublic Health

Why Our HealthCare Spending Doesn’t Make Sense

Marya Zilberberg
Marya Zilberberg
Share
4 Min Read
SHARE

You know that joke about the drunk crawling around under a street light? A cop comes up to him and asks what he is doing. The drunk explains that he is looking for his wallet. The cop, getting ready to help the man, asks where exactly he dropped it. The drunk points to a distant corner of the dark side of the street. The cop, baffled, inquires why the man is looking here. With inimitable logic the drunk responds, “This is where the light is.”

You know that joke about the drunk crawling around under a street light? A cop comes up to him and asks what he is doing. The drunk explains that he is looking for his wallet. The cop, getting ready to help the man, asks where exactly he dropped it. The drunk points to a distant corner of the dark side of the street. The cop, baffled, inquires why the man is looking here. With inimitable logic the drunk responds, “This is where the light is.”

What does this story have to do with anything? Well, I went to a great HIT tweet-up in Cambridge yesterday, organized by Scratch Marketing and led by Janice McCallum. No, they did not at all remind me of the drunk in the joke. But the lively discussion about data by about two dozen attendees inspired by Janice’s thoughtful presentation certainly made me realize that our healthcare policy is like that drunk. Here is what I mean.

Our healthcare expenditures are completely devoid of any attempt at probabilistic thinking. I thought about the old Rand Corporation data, which I have presented here before. Juxtaposing them with the data on our National Healthcare Expenditures really drives home my message that we need to get a whole lot better at applying probabilities to our decisions. And this specifically applies to policy.
 
Just look at the glaring imbalance: while fully 60% of all premature deaths are due to behavioral, social and environmental factors which reside in the realm of public health, 97% of all NHE is spent on the medical side. If I add the 2% of the total NHE spent on research into the public health piece of the pie (this is exceedingly generous, as public health research gets a bafflingly tiny portion of the total US research budget), we still have 95% spent on personal health and its administration and only 5% on public health. 

So, if the probability of premature death due to a public health-related condition is 60%, why are we only spending 3% of all the healthcare dollars on fixing it? Another way of posing this question is, if the probability  of premature death from issues related to access to adequate medical care is 10%, why are we spending 97% of all the NHE on that piece of the pie?

More Read

The Value of Healthcare Portals for Patient Engagement
Attracting New Patients to Your Medical Practice
Holly, Jolly Healthcare: Things You Need to Know About Selling Insurance
Greedy Insurance Company Backs Down: The Little Guy Wins!
Leapfrog and the Hospital Safety Score

If this isn’t just like that joke, I don’t know what is. Only in this case it is much less funny than in the case of the drunk.





TAGGED:healthcare costshealthcare spending
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5KFollowersLike
4.5KFollowersFollow
2.8KFollowersPin
136KSubscribersSubscribe

Latest News

What Hospitals Need to Know About EU MDR -- AI-generated illustration
What Hospitals Need to Know About EU MDR
Business Hospital Administration
August 18, 2026
How to Choose an On-Demand Medical Interpreting Provider for Your Hospital -- AI-generated illustration
How to Choose an On-Demand Medical Interpreting Provider for Your Hospital
Health care
August 12, 2026
The Chemistry Of Drug Consistency -- AI-generated illustration
The Chemistry Of Drug Consistency
Policy & Law
August 12, 2026
Dental Materials Through The Decades -- AI-generated illustration
Dental Materials Through The Decades
Dental health Infographics Specialties
August 12, 2026

You Might also Like

Maybe Walmart Should Open a Hospital Instead

November 10, 2011

Off-Label Drug Promotion and the First Amendment

November 4, 2011
BusinesseHealthTechnology

4 Ways How Text Messaging Can be Used as a Healthcare Marketing Channel

November 23, 2017
data_pic
BusinessHospital AdministrationRadiology

2015 CPT Coding Changes and Your Radiology Practice

March 24, 2015
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2026 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?