Freakonomics Radio
456. How to Fix the Hot Mess of U.S. Healthcare
Apr 1, 2021
Zach Cooper, a healthcare economist from Yale, and Marty McCary, a Johns Hopkins surgeon and author, dive deep into the chaos of the U.S. healthcare system. They discuss the surprising amount of unnecessary medical care and the shocking rise in prescription rates. The duo critiques the high spending with low outcomes and explores how profit motives shape patient care. They argue for incremental reforms over sweeping changes, while dissecting pricing transparency efforts and the trust issues surrounding surprise billing that plague patients today.
49:50
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Quick takeaways
- The US healthcare system suffers from pricing failures, inappropriate care, and an average of 21% unnecessary medical care, leading to a inefficient and costly system.
- Implementing a series of small, one percent changes, such as addressing monopolistic practices, increasing price transparency, and improving competition, can significantly reduce healthcare spending and improve efficiency and affordability in the US healthcare system.
Deep dives
The American healthcare system is as messed up as people think
According to healthcare economist Zac Cooper, the US healthcare system is as messed up, if not more so, than people believe. While there are pockets of amazing care and innovation, the system as a whole suffers from pricing failures and inappropriate care. A national survey of physicians found that an average of 21% of medical care is deemed unnecessary, highlighting the waste in the system. The high cost of healthcare in the US, which accounts for 17% of GDP, does not correlate with better health outcomes, as the country lags behind other developed nations in several key health indicators.
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