News & Events

  • NIHCM Foundation is now accepting letters of inquiry for the 2015-2016 funding cycle of our health care journalism grant program. The program seeks timely health care journalism projects that inform efforts to improve the health of Americans, and that examine emerging health issues and their implications for cost, quality and access.

  • The Government Accountability Office (GAO) just released an important review of the way the Relative Value Scale Update Committee (RUC) and CMS value physician services for Medicare. The report finds significant flaws in the data and processes used, echoing a recent Expert Voices essay by RUC researcher Miriam Laugesen.

  • NIHCM Foundation is now accepting letters of inquiry for the 2015-2016 funding cycle of our investigator-initiated research grant program. We are making a total of up to $250,000 available to be divided among four to five studies in the areas of health care financing, delivery, management and/or policy.

  • Upcoming Webinar on the Future of Telehealth in America

    Telemedicine is booming, fueled by promises of consumer convenience and better access for the underserved. Nearly half of employers will offer telehealth benefits this year. 

  • The federal government invests heavily in physician residency training—to the tune of $15 billion a year. But is this investment producing a physician workforce that meets our modern health care needs? 

  • With another presidential election on the horizon, the perennial debate over reforming federal entitlement programs has already begun to resurface. Policy prescriptions are bound to vary along the political spectrum, but failing to come to agreement and act will threaten our long-term fiscal health.

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Expert Voices: Why America Spends More on Health Care

Eric Jensen, Consultant
Lenny Mendonca, Director of Firm Knowledge, McKinsey & Company
 

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November 2009

Pathbreaking work by the McKinsey Global Institute (MGI) shows that, relative to other peer countries from the Organisation for Economic Cooperation and Development, the U.S. spends nearly $650 billion more on health care than would be expected after adjusting for cross-country differences in wealth. Fully two-thirds of this added spending occurs in the outpatient sector. The highly profitable nature of many outpatient services coupled with the incentives of a fee-for-service payment system are contributing to greater intensity of outpatient care and helping to fuel this spending. In this essay, Eric Jensen and Lenny Mendonca describe MGI's work to examine all sectors of the American health care system and identify factors responsible for the higher-than-expected spending.

Other recent Expert Voices essays include:

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