Sunday, April 29, 2012

Health Demand Not Insatiable

We have often heard about the insatiability of healthcare demand, especially when it is taxpayer, publicly funded healthcare.  On its face, this has always been a ridiculous argument.

Think about your choices:
A.1. go to doctor (clinic, hospital, pharmacy whatever)
2. mow lawn
B.  1. go to doctor (clinic, hospital, pharmacy whatever) 
2. visit grandma
C. 1. go to doctor (clinic, hospital, pharmacy whatever)
2. wash the car
D. 1. go to doctor (clinic, hospital, pharmacy whatever)
2. golf
E. 1. go to doctor (clinic, hospital, pharmacy whatever)
2. read (write) blogs
and so on.
You get the idea.

Anyway, turns out the rise of healthcare cost to society is lessening, still rising, but at a slower rate.

How much of that cost is due to simple price increase where the number of service events has not increased, but the cost of each of them has?  Don't know.  Worth looking into as healthcare costs have traditionally seen much greater inflationary pressure than the broader economy.

And here's an interesting article on the issue:
http://www.nytimes.com/2012/04/29/health/policy/in-hopeful-sign-health-spending-is-flattening-out.html?_r=1&nl=todaysheadlines&emc=edit_th_20120429&pagewanted=all
Mike

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