Sylvia Romm, MD, MPH’s Post

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Founder and Chairperson, Physician and Healthcare Executive | Telehealth, SDoH, Virtual Care

It's an open secret: the US healthcare system is highly profit-centric. While it's not inherently wrong for healthcare organizations to be financially sustainable, when profit drives decisions more than patient care, we have to question the balance. Research by JAMA shows that administrative costs, a significant portion driven by the complexity of billing and reporting in our profit-centric model, make up about 34% of US healthcare expenditure (Source 1). This inefficiency doesn't just cost us dollars, it costs us in the quality of care and outcomes. Furthermore, a study published in Health Affairs found that pharmaceutical companies, an integral part of our healthcare ecosystem, spend more on marketing than on research and development (Source 2). Is our health being commodified? This profit-centric model impacts patient care. As per the Commonwealth Fund, the US lags behind other high-income countries on several health outcome measures, despite leading the world in healthcare spending (Source 3). Is the pursuit of profit overshadowing the pursuit of health? It's high time we reevaluate our priorities. What if we shifted the center of our healthcare universe from profit to patients? Can we evolve to a model that rewards quality and outcomes over volume? Let's begin a crucial conversation on this. How can we reshape the US healthcare system to prioritize patient care without sacrificing sustainability? Can we strike a balance between profitability and equitable, high-quality patient care? I welcome your thoughts and ideas. Together, we can drive change and create a healthcare system that truly serves its patients. #USHealthcare #HealthcareReform #TimeForChange Sources: "Health Care Administrative Costs in the US vs Canada," JAMA "Pharmaceutical Industry Spends More on Marketing Than Research and Development," Health Affairs "Mirror, Mirror 2021: Reflecting Poorly," The Commonwealth Fund

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A B Jones

Helping healthcare startups achieve scalability with sales, marketing and operational expertise.

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If one is going to attempt to levy an attack against an industry, one should understand the "math" of what they are attempting to criticize. These "studies" lumped in ALL SG&A costs. That means pension costs, salaries, facility costs, legal, etc. Oh, and don't forget the income-dependent rebates and free samples, too... Pharma has one of the highest investments in R&D among any industry. Depending on who and how calculated, it is usually ranked #1 or #2. Pharmaceuticals deliver the vast majority of therapeutic benefit to a patient, yet according to the AMA for 2021, they represented 8.9% of the costs. That's a relative bargain. How much did labor costs grow again over the past few years?

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