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Upcoming Webinar: Effective Government & Private Sector Initiatives to Address Childhood Obesity

NIHCM Foundation and WellPoint, Inc. will host a webinar, "Effective Government & Private Sector Initiatives to Addr...

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AcademyHealth to Host Health Policy Orientation

AcademyHealth's annual Health Policy Orientation will take place in Washington DC on October 25-28, 2010. This event...

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Upcoming Webinar: Adolescent & Young Adult Health in the Post Reform Era

NIHCM will host a webinar, "Adolescent & Young Adult Health in the Post Reform Era," on August 17, 2010 at 1:00...

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New Issue Brief on Perinatal Oral Health

NIHCM Foundation and the Children's Dental Health Project are pleased to announce the release of a new Issue Brief, "...

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Creating Healthy Opportunities: Conversations with Adolescent Health Experts

NIHCM Foundation, in collaboration with the Partners in Program Planning for Adolescent Health (PIPPAH) initiative, is please...

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New Issue Brief on Maternal Depression

NIHCM Foundation is pleased to announce the release of a new Issue Brief, "Identifying & Treating Maternal Depressio...

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NIHCM News

New Expert Voices: Why America Spends More on Health Care

October 22nd 2009

NIHCM Foundation is pleased to release a new edition of Expert Voices, "Why America Spends More on Health Care", by Eric Jensen, Consultant and Lenny Mendonca, Director of Firm Knowledge, McKinsey & Company.

         

Path breaking 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, Jensen and 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.

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