Running head: PERSPECTIVE OF THE U.S.

HEALTHCARE SYSTEM 1

Perspective of the U.S. Healthcare System

Madisson P. Hall

Los Angeles Pacific University

Abstract

The object of this report is to analyze the U.S. healthcare system by identifying its strengths and

weaknesses. I will then use these identified weaknesses to generate possible solutions for a

reform of the healthcare system. I will be focusing on issues such as cost effectiveness of the

current healthcare system and accessibility, as well as steps that we can take to improve these

aspects.
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Perspective of the U.S. Healthcare System

“The current healthcare system is neither healthy, caring, nor a system.”

-Walter Cronkite

The U.S. government aims to provide affordable, accessible, high-quality healthcare for its

citizens. In terms of healthcare, quality seems to be one area we have excelled in as a nation,

however, affordability and accessibility could use some work. While it is easy to identify major

problems with the healthcare system, the challenge lies in finding a solution that everyone can

agree on. Democrats are rallying for a single-payer system while Republicans are still trying to

figure out how to tear down Obamacare. Regardless of where you stand though, the fact is that

healthcare is costing us more than we can afford as is, and is only going to get worse with the

aging baby boomer population. Therefore, we must work together to reach some sort of

consensus on healthcare reform, because if we are unhealthy, America is unhealthy.

Strengths

Though it may be severely flawed in a number of ways, U.S. healthcare does still possess some

core strengths worth mentioning. One testament to the progress in the quality of healthcare is the

increase in life expectancy. According to an article published by the U.S. Department of Health

& Human Services (2019), average life expectancy went from 47.3 years in 1900 to 76.8 years in

2000. Some of the healthcare system’s other strengths which have contributed to this progress

include: a vast, well-trained workforce, a wide range of high-quality specialists, a strong health
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sector research program, and for certain services, among the best medical outcomes in the world

(Rice et al., 2013).

Weaknesses

I think most can agree that the two major areas where the healthcare system falls short are cost

effectiveness and consistent accessibility for all citizens. According to Berchick, Hood, and

Barnett (2018), 28.5 million Americans did not have any type of health insurance during any

point of 2017. The study also found that non-Hispanic Whites had the lowest uninsured rate

among races at 6.3 percent, with Asians ranking the next lowest at 7.3 percent. Among the

highest uninsured rates were African Americans at 10.6 percent and Hispanics at a shocking 16.1

percent. (Berchick, Hood & Barnett, 2018). This clearly speaks to the issue of equal accessibility

of care for all citizens. On the other hand, we have the daunting problem of the outrageous and

ever-increasing cost of healthcare for the U.S. government. “In 2017, the United States spent

about $3.5 trillion, or 18 percent of GDP, on health expenditures – more than twice the average

among developed countries” (“American Healthcare: Health Spending and the Federal Budget,”

2018, para. 2). Of that $3.5 trillion, $1.5 trillion was financed by the federal government. It has

been predicted that by 2028, that number will nearly double to $2.9 trillion. Among all the

nations in the Organization for Economic Cooperation and Development (OECD), the United

States has the highest healthcare spending per capita (“Strategic Goal 1: Reform, Strengthen, and

Modernize the Nation’s Healthcare System,” 2019). If we do not do something to significantly

lower the cost of care per person, the problem will become even more out of control, eating up

all of the federal spending, taking resources away from other vital areas.
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Proposed Reforms

One way that healthcare expenditures could be significantly reduced is by allowing Medicare,

the largest purchaser of prescription drugs, to negotiate drug prices. Prescription drugs account

for roughly 20 percent of Medicare spending, equaling $129 billion in 2016. (“10 Essential Facts

About Medicare and Prescription Drug Spending,” 2019). By allowing Medicare to negotiate the

cost of these prescription drugs, prices could be driven down, reducing overall spending for

government healthcare programs. Some believe this concept could be coming into play in the

near future, and it could not come a minute too soon, seeing as roughly 10,000 Americans will

turn 65 (the eligible age for Medicare) everyday until 2030 (Knickman & Snell, 2002).

Another way to drive the cost of healthcare down while also enhancing the quality of care, is by

increasing competition among healthcare providers. Practices are consolidating and the number

of hospital mergers is continuously increasing. When hospitals have no local competition, studies

have shown that prices are 12.5 percent higher on average. Barros, Brouwer, Thomson, and

Varkevisser (2015) explain that “economic theory suggests competition will force organisations

to be more efficient and innovative and may therefore reduce unit prices. If prices are regulated

and quality is observable as well as used to guide demand, economic theory predicts competition

to improve health service quality.” Not only would this approach reduce healthcare costs and

increase quality of care, but it could also have a very positive impact on accessibility. The lower

the cost of care, and the more providers there are in a given area, the more people will be able to

access adequate health care.

Conclusion

The healthcare crisis in the United States is deep and complex and will not be solved overnight

with some end-all-be-all solution. It will take time, innovation, political participation, and most

of all cooperation of both parties to come up with the best possible system for our nation. It has

its strengths, such as a large highly-trained workforce, and some of the best medical outcomes in

the world. But the system also has its shortcomings, such as cost efficiency and accessibility.

Ultimately a healthcare reform is in order, and must happen soon for our government to be able

to continue to support the costs of the programs currently in place. Afterall, for a nation to thrive,

its population must be healthy.

References

10 essential facts about Medicare and prescription drug spending. (2019). Henry J Kaiser Family

Foundation. Retrieved from https://www.kff.org/infographic/10-essential-facts-about-

medicare-and-prescription-drug-spending/

American health care: Health spending and the federal budget. (2018). Committee for a

Responsible Federal Budget. Retrieved from https://www.crfb.org/papers/american-

health-care-health-spending-and-federal-budget

Barros, P. P., Brouwer, W. B., Thomson, S., & Varkevisser, M. (2015). Competition among

health care providers: helpful or harmful. The European journal of health economics,

17(3), 229-33.

Berchick, E., Hood, E., & Barnett, J. (2018). Health insurance coverage in the United States:

2017. United States Cencus Bureau.

Knickman, J. R., & Snell, E. K. (2002). The 2030 problem: Caring for aging baby boomers.

Health services research, 37(4), 849-84.

Rice, T., Rosenau, P., Unruh, LY, Barnes, AJ, Saltman, RB, & van Ginneken, E. (2013). United

States of America: Health system review. Health Systems in Transition, 15(3). doi:

24025796

Strategic goal 1: Reform, strengthen, and modernize the nation’s healthcare system. (2019). U.S.

Department of Health & Human Services. Retrieved from

https://www.hhs.gov/about/strategic-plan/strategic-goal-1/index.html