News & Events

  • Just 5 percent of the population accounts for 50 percent of national health spending. Behind these numbers are patients and families struggling with multiple chronic conditions, physical and mental impairments, and tremendous stress.

  • Washington, DC – October 10, 2014 – NIHCM Foundation has awarded $215,000 to eight organizations through the first cycle of its new journalism grant program announced earlier this year.

  • The Relative Value Scale Update Committee (RUC)—a small panel of medical professionals whose recommendations have considerable influence over Medicare payment levels for their own services—has drawn quite of bit of political and media scrutiny recently.

  • More than 8 percent of two- to five-year-olds are obese, and another 23 percent are overweight and at substantial risk of becoming obese by the eighth grade. These early years are a critical time to focus on the development of healthy habits.

  • The annual cost of cancer care in the U.S. is large and growing—projected to hit $184 billion by 2020. This fiscal reality has spurred interest in bundled-payment models that reward providers for maintaining or improving clinical outcomes while controlling costs.

  • Video and slides are now available from NIHCM’s September 3rd policy briefing on Capitol Hill, “The Future of Health Care in America: The ACA and Beyond.” This briefing brought together health care leaders with diverse perspectives to discuss the latest developments in ACA implementation, the dramatic market-driven transformations currently underway, and other policies and issues to watch going forward.

NIHCM

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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