Saturday, August 20, 2016

The Link Between Health Spending and Life Expectancy: The US is an Outlier

 It should come as no surprise that, with the most fabulously overpriced health care system in the world, it delivers notably poor outcomes in terms of measurable results, such as life expectancy. This post seeks to get a better understanding as to why. Note that the analysis omits certain issues, for instance, that there is solid evidence that suggests that more unequal societies are more unhealthy. But that would mean US results should be compared to the subset of pretty to very unequal counties, and you’d still find the same result, that high US expenditures do not translate into better results.

This short study identifies that spending on healthcare is very unequal, and intuitively seems not explainable by differences in the health of the population (and Medicaid data suggests that this intuition has merit).

So the question for reader is: what might explain this pattern? One issue, which is not discussed as often in the press as it needs to be, is that the driver of the high cost of end of life care often amounts to what Lambert calls, “Insert tube, extract rents” of sheer looting. The press will occasionally feature stories about how an aged parent goes into a hospital or other institutional setting, and despite the relatives having a medical power of attorney plus clear, legally well documented instructions that the patient does not want high cost interventions with limited life extension potential, that the medical professionals come close to or actually do threaten the family with litigation if they attempt to remove the patient or restrict care.

Another issue for patients is the way that they’ve been conditioned to believe that Something Can Be Done when they have a condition that is pretty much a permanent impairment. This is particularly common with orthopedic procedures. I see individuals in my gym that I can tell from how they discuss their surgeries that they’ve been overtreated for no or negative benefit.

Other thoughts?

http://www.nakedcapitalism.com/2016/08/the-link-between-health-spending-and-life-expectancy-the-us-is-an-outlier.html

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