Best wishes for a wonderful holiday season from Improving Population Health. We regularly scan eleven journals for new studies of particular population health relevance (the list of journals is at the end of this post). For this year-end roundup, we’re highlighting a couple of recent articles and also listing those we’ve called attention to earlier in the year.
This must-read article highlights the recent IOM estimates that $750-$765 billion spent on health care in the U.S. is in excess of what should be spent to achieve our observed health outcomes. Of this amount, the IOM estimates that $421 billion accrues to the private sector which the authors say is “functionally a tax that limits the international competitiveness of the US and reduces the economic welfare of the population.”
This paper focuses on the public sector which pays the remaining $337 billion and questions the “public opportunity costs of the unnecessary healthcare spending,” which they call a Health Dividend and characterize as “a sizeable stream of resources that would come at no net cost to people’s health and that could be invested in achieving two important objectives: stabilizing the nation’s fiscal health and improving well being.” The authors identify specific investments contributing to Fiscal Stability, Social Investments, and Infrastructure Investments that such a dividend could support. The authors conclude with a clear vision: “whatever one’s values and preferences, eliminating excess medical care costs provides a monumental opportunity to reallocate those resources to strengthen U.S. international competitiveness, enhance well-being, and build a healthier nation. The result of redirecting some $750 billion per year could be transformative for Americans, and the potential uses for these funds are panoramic in both scope and possibility.”
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