Overhaul necessary for Persistent Flaws in U.S. Healthcare System
The United States healthcare system, which spent a staggering $4.87 trillion in 2024, or $14,570 per person, has long been criticised for its high costs and less-than-excellent quality [1]. The system's woes can be traced back to outrageous prices, enormous profits, massive inefficiencies and waste, substantial administrative costs, an inability to align incentives, and a reluctance to shift from fee-for-service to value-based care.
Rising prices for healthcare services and prescription drugs, exceeding general inflation, hospital consolidation, and lack of site-neutral payment policies, fragmented billing and administrative inefficiencies, and high utilization of high-cost outpatient care and specialty drugs are some of the root causes [5].
In a value-based system, the incentive shifts from treating sick people to keeping them well. This transition involves aligning financial incentives with quality rather than volume of care, enhancing care coordination and communication across providers, expanding the use of models like accountable care organizations (ACOs), pay-for-performance, and Medicare Advantage plans, implementing capitation payment models, and policy and regulatory reforms to address hospital consolidation, encourage competition, and promote site-neutral payments [2].
Leveraging health IT and data analytics is also crucial to track performance, enable risk stratification, and support population health management within capitated systems. The debate over Certificate of Need (CON) laws continues, with arguments for and against their effectiveness in controlling healthcare costs, promoting competition, and maintaining quality standards [1].
Despite spending the most on healthcare globally, the U.S. ranks poorly on outcomes, equity, and access compared to other high-income countries. The move to a single-payer, government-run healthcare system is a controversial solution, but it has worked well in some Western European countries. However, the average health insurance premium for a family was $25,572 in 2024, and 20 million Americans had medical debt, with 3 million citizens owing more than $10,000 [1].
As the U.S. healthcare system grapples with these challenges, it's clear that a comprehensive, systemic realignment is necessary to promote efficiency, integration, and patient-centered outcomes.
