

FHC #185: A System in crisis, a technology in waiting
Aug 20, 2025
The discussion delves into the alarming trends threatening the U.S. healthcare system, including rising costs, physician burnout, and dwindling solutions. Experts analyze the potential for economic collapse and the role of private equity in cost-cutting. The conversation also shifts to how generative AI could revolutionize patient care, exploring two paths: tech startups with FDA-approved tools and clinicians empowering patients through existing AI models. Both approaches aim to enhance outcomes while addressing the current medical landscape's challenges.
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Three Forces Pushing Healthcare Toward Collapse
- U.S. healthcare faces three converging threats: rising costs, expanding medical employment without better outcomes, and physician burnout leading to exits.
- These trends together risk pushing the system toward economic collapse without major change.
Labor, Not Innovation, Drives Cost Growth
- Healthcare spending is growing faster than the overall economy and will consume an increasing share of GDP by 2033.
- Labor — not capital investment — is the main driver of excess healthcare cost growth today.
Physician Exodus Raises Long-Term Costs
- Physician workforce erosion increases future costs by delaying access and undermining prevention.
- Rising physician burnout, practice consolidation, and private equity ownership worsen affordability and quality.