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
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    stress disorder
    5 Ways To Manage Post-Traumatic Stress Disorder
    October 27, 2021
    Medical device classification and development strategies
    Medical device classification and development strategies
    April 5, 2023
    varicose veins
    Varicose Veins Prevention: 3 Lifestyle Changes to Make Right Now
    May 1, 2022
    Latest News
    How Probate Planning Shapes the Future of Your Estate and Family Care
    July 17, 2025
    Beyond Nutrition: Everyday Foods That Support Whole-Body Health
    June 15, 2025
    The Wide-Ranging Benefits of Magnesium Supplements
    June 11, 2025
    The Best Home Remedies for Migraines
    June 5, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    How People Are Taking Advantage of Health Deals in the Recent Recession
    February 5, 2021
    Florida Board of Medicine Declares Arizona Homeopathic Doctor “Very, Very Dangerous”
    October 29, 2018
    6 Ways to Make Sure You’re Detoxing Properly
    July 26, 2018
    Latest News
    How IT and Marketing Teams Can Collaborate to Protect Patient Trust
    July 17, 2025
    How Health Choices and Legal Actions Intersect After an Injury
    July 17, 2025
    How communities and healthcare providers can address slip and fall injuries with legal awareness
    July 17, 2025
    Let Your Lawyer Handle the Work Before You Pay Medical Costs
    July 6, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Why US Healthcare Costs More
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 > Why US Healthcare Costs More
BusinessFinanceGlobal HealthcareHospital AdministrationPolicy & LawPublic Health

Why US Healthcare Costs More

DrTerrySimpson
DrTerrySimpson
Share
5 Min Read
SHARE

Why are healthcare costs in the United States twice that of other countries? Healthcare inflation has been going on for decades, and although its rise has slowed the last few years, the costs of healthcare threaten to consume both the federal and state budgets and are still a leading cause of bankruptcy in the United States. The main reason is price.

First a few simple statistics about US Healthcare from the International Federation of Health Plans, in their newly released annual report:

Average daily rate of hospital room in the United States: $4293

Why are healthcare costs in the United States twice that of other countries? Healthcare inflation has been going on for decades, and although its rise has slowed the last few years, the costs of healthcare threaten to consume both the federal and state budgets and are still a leading cause of bankruptcy in the United States. The main reason is price.

More Read

Walmart’s Greatest Gift
Stressing Employee Sleep and How It Can Impact Your Practice, Hospital, and Overall Productivity
European Diabetes Market
The Increasing Problem of Chronic Wounds and Their Medtech Solutions
G-8: What is the Connection Between Smallholder Farming, Agricultural Productivity and Nutrition?

First a few simple statistics about US Healthcare from the International Federation of Health Plans, in their newly released annual report:

Average daily rate of hospital room in the United States: $4293

That cost is six times what it would be in Argentina and ten times what it costs in Spain.

If the US paid for Nexium what The Netherlands did we would have paid 663 million last year instead of 6.1 billion

Market Economics Don’t Work

In single payer systems there is a single body that negotiates prices with hospitals and drug manufacturers. If the rates are not agreed to then the business is lost. Insurance companies use this locally in the U.S. to negotiate with physicians – and have driven the cost of physician prices lower. But the insurance companies do not have the power to negotiate with pharmaceuticals or hospitals the way a larger system does. In addition, the costs of the healthcare system are simply passed on to the insured with no consequence – hence, the US has the highest rate of healthcare inflation in the world. The British system has a unit of people whose whole job is negotiating with drug manufacturers to give the country a better price on prescription medications.

The British are buying in bulk for a country of 63 million people – and can successfully ask for steep discounts in return. In the US the marketplace does not do this. Pharmaceuticals are allowed to gouge the public for prices, then turn around and spend more on advertising to consumers than they do on research for more products. We discussed television ads for pharmaceuticals here.

Other costs: An MRI in Switzerland costs $138, but $1445 in the United States. All of those free-standing MRI machines provide quick access but at high prices and often unnecessary (according to the American College of Radiology).

Gleevic, an effective drug for some forms of leukemia, costs $6,214 in the United States and in New Zealand it costs $989. The same drug, same efficacy – but in the US where the average deductible for insurance is $5000 – this means the patient is getting gouged for the drug.

By expanding healthcare to all individuals in the border and setting up a system to negotiate prices, healthcare costs can dramatically decrease. Until then, the brunt of the cost will be the economy as more and more dollars that could be spent on other items: improving the nation’s infrastructure, providing better clean up of waterways, increasing budgets for research, or developing better fuels that are not carbon intense.

While some tout reform of the tort system (which needs reform) it is the inflated cost of items that provide for the runaway costs of healthcare.

Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
How IT and Marketing Teams Can Collaborate to Protect Patient Trust
Global Healthcare Policy & Law
July 17, 2025
paramedics in surgical gloves and masks
How Health Choices and Legal Actions Intersect After an Injury
Health care
July 16, 2025
a woman giving a key
How Probate Planning Shapes the Future of Your Estate and Family Care
Health
July 16, 2025
a woman with kinesio tapes on her back arm
How communities and healthcare providers can address slip and fall injuries with legal awareness
Health care
July 16, 2025

You Might also Like

What Colonoscopies Cost (and Why)

March 13, 2012
Medical EthicsMedical InnovationsNews

Should the FDA Approve Experimental Treatment for Severe Diseases?

May 9, 2016

Who Will Spend the New Money for Family Planning?

July 13, 2012

Report: Avoidable ‘Never Events’ Increase in Minnesota Hospitals

January 20, 2012
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?