Cost Analysis of Medical Procedures


The persistent increase in healthcare cost over the years has left lots of Americans burdened to reimburse their health check bills. Majority of the workers protest that they are unable to afford the high premiums unleashed by health insurance companies. Patients usually relinquish more the suggested care to a certain extent than paying the on delivery kind of health services. Moreover, the employers are now and then eliminating or cutting back their employees’ health benefits, while compelling millions additional citizens into the lines of those uninsured. The central together with the federal governments are constantly straining to meet up the growing expenses of civic programs, such as Medicare and Medicaid (The High Cost of Health Care – New York Times, 2007).

Get a price quote
Title of your paper
Type of assignment
Writing level
First order only: 00.00

In the country, the cost of healthcare expenditures is more elevated than in any other highly developed country, whether calculated in entirety dollars used up, as a proportion of the nation’s economy, or else on the basis of per capita. Furthermore, health expenses in the country have been intensifying more rapidly than the personal incomes or general economy for over 40 years, which is quite a terrifying trend. This issue is basically the most awful long-term economic catastrophe facing the U.S., and it requires a resolution, although discovering one solution will not be palatable or easy. For instance, there are some of the most costly health procedures in the country which include intestine transplant, heart transplant, and transplant of bone marrow, lung and liver transplant, amongst others (Hixon, 2012).


Many reasons have been brought forth the causes of high health costs in the country, but some of them are deeply rooted and varied. Divergent to trendy beliefs, this issue is not driven mostly by growing of the children explosion generation in the country, or the towering cost of treatment drugs, or even medical unprofessional conduct proceedings that initiate suspicious medicine. Such issues regularly lead to political discussion; nevertheless, they have participated comparatively negligible roles in increasing up medical expenditure in this nation. The key causes are more deeply rooted and seemingly remotely harder to eradicate (The Causes of High-Cost Medical Care, 2011).

Roughly all the economists in the country would concur that the major driver of soaring medical costs here is the wealth present. The U.S. is richer than most countries, and therefore, everyone is so enthusiastic to even spend more on healthcare. However convincing researches and analyses have established that overall, the nation spends well over what sheer affluence would forecast. With high growth in economy come up many challenges, and this has affected the country greatly, as it is immensely driving up the rates of healthcare expenditure. Generally since the nation possesses very high revenue per capita, and therefore, this phenomenon is bringing out sky-rocketing costs in the healthcare sector (Terry, 2011).

This is typically since the citizens pay physicians and hospitals much further than many other nations do. The population highly relies on expensive health professionals, who, in essence, overuse sophisticated technologies, like M.R.I. machines and CT scans, and who consequently resort to expensive medical or surgical procedures much more than the operations of medical practitioners in other nations. Obstinate insurance inducements entice patients, as well as physicians, to use costly therapeutic services further than is necessary. The disjointed range of providers and insurers consumes up lot of funds in profits, marketing costs, and administrative expenses that do not distress the government managed systems.

Order now

When in the commerce sector there appears to be high and also with uncompetitive costs, there comes up a sensible tool known as benchmarking, which is applied in comparing the prevailing costs and worth, and thereafter, resolve where the dissimilarity arises, and moreover, the reason behind the phenomenon. Nonetheless, the health sector has received much attention in the recent times, but little understanding behind the soaring expenses of the services has hindered the full changes being implemented to better the condition (The Causes of High-Cost Medical Care, 2011).

In 2008, the United States used up close to $7,000 per capita regarding the healthcare. The peer nations, for instance the U.K. and Japan, expend around half of that quantity, and realize similarly good outcome, which is evident in the high life expectancy at birth (Hixon, 2012).

The country’s annual spending on medical doctors per capita is around five times elevated than in other economically stable countries: $1,600 against $310 in a model of these peer nations, a disparity of about $1,290 per capita, or rather $390 billion countrywide, and this translates to 37 percent of the overall healthcare costs gap. The leading aspect that is driving the gap is expenditure on specialist physicians, which basically has been noted to be 3 to 6 times higher in the country, than in the peer nations.  Subsequently, this escalating discrepancy is generally due to extreme elevated healthcare prices in the country, which are soared by both towering per process rates remunerated by both private and public payers, as well as larger fraction of top expenses paying by the private sectors. By evaluation, the rates of public visit for U.S. main care physicians are indicated at the soaring ending of the array for economically similar nations, and the private sector rates are somewhat above the variety. The primary care givers’ incomes are more elevated than in the peer nations, even though they are fewer than the half of all the overall incomes acquired by the American specialists. The general primary care physician deployment is relatively low down in the country, and this keeps the overall expenditure on prime care down (Hixon, 2012).

Through various explanations put forward to the spending gap in physicians’ healthcare maintenance management department, which is responsible for setting the country’s Medicaid and Medicare rates, and seemingly pays a lot more for professional services comparative to the health prime care utilities than administration authorities found in the peer nations; moreover, the private based insurers have generally done a pitiable job of bargaining rates with specialists.

Analysis of the healthcare expenditure between the different regions in the U.S. has been carried out mainly by comparing the top quintile with the lowest expenditure in numerous regions. The findings reveal that the costs variation after accounting for variations in ethnicity, income, as well as heath status is USD 2,300 per fiscal year. In return, the health effects are not as improved in all the soaring expenditure areas as in those which are low in healthcare spending. This enormous gap is attributed to the local differences in flexible therapeutic decisions moving higher patient recommendation rates for soaring-cost complex care, for instance, through the indulgence of MRI and CAT scans, hospitalization, and also involvement of specialists. A hypothetical case comes up, which shows that if the whole U.S. were taken to the expending intensity of the most little quintile, then the savings ought to be around $750 per fiscal year: which translates to 21 percent of the entire gap (Tokin, 2012).

Need reliable and quick help with your paper?

Connect us right now

Therefore, with this escalating cost of healthcare, many Americans are to a greater extent failing to be given the required medical treatment for the common reason behind the soaring expenses of care. For this reason, there are several solutions which can ensure that the overall cost of healthcare is lowered extensively for the reach of the common man. The U.S. healthcare scheme holds up well at the back of other segments of the financial system. The sector needs to adopt medical systems, which are in line with the current technology; include information distribution technologies, electronic health records mechanisms, and even computers that can significantly boost the overall sector’s productivity in terms of healthcare delivery. Other nations have implemented the same strategies, and without a doubt, similar prevalent computerization, possibly will at great lengths to reduce the formalities and paperwork trouble on physicians, as well as hospitals, reduce drastically prescription errors, and moreover, reduce the expensive replication of systematic experiments, as the patients transverse from one medical doctor to another. This transformation, though financially demanding, would eventually reduce the expenses occurred in healthcare services.

Taking into account the preventive measures together with preventive medicine practices, such as aggressive screening, regular checkups, smoking cessation, better nutrition, exercise, weight control, and cautious consumption of medicine, so as to reduce risks, helps in improving healthcare, and also lowers the costs in the long run. Even though preventive medicine essentially costs funds, someone has to expend time screening and counseling patients for ailment, and although it is not apparent how shortly considerable savings might show up, but it is quite an attainable goal which needs to be put in place. Similarly, thorough disease management has to be put into practice, as virtually all strategy experts have to in-coordinate more vigilant management of the general caring of recurrently ill people, and since they account for quite large fraction of the country’s healthcare spending. Therefore, for this reason, disease management would be a productive undertaking in bringing down the overall cost of healthcare services, and more so, delivery.


The soaring healthcare cost in the country is frightening; as every day, many people are becoming unable to afford the services of healthcare, thus, putting the country’s overall productivity in jeopardy. All the wide variety of causative factors to the issue has to be handled concurrently, and moreover, the measures put forth ought to be practiced wholly, but bearing in mind not to impair the quality of healthcare.

Looking where to buy an argumentative essay? Choose our custom writing service and get 15% OFF on first order!



Custom Writing on
Any Subject




Only Original






BA, MA and
PhD Writers




Any Citation