A lot of the other factors that seemingly increase the cost of healthcare can be traced directly to the doctor shortage. For example, yes, hospitals spend a lot of money on equipment that is arguably not needed. But what’s being missed in that reasoning is the fact that if you have the dire shortage of doctors that we have, then you can’t have doctors wandering the corridors looking for equipment when it is needed, or twiddling their thumbs while orderlies do so. It’s got to be there when they need it, and it’s got to be working. It’s got to have all the convenience features that are available, and it’s got to work quickly. So they spend money on duplicate equipment, and they buy the Cadillac model, not the Chevy.
Hospitals would not buy the equipment unless it pays for itself. No one is forcing them to do so. The fact that they do tells you that it’s not the problem, but only a symptom of the problem.
Not suggesting they should not have purchased the equipment. As reported in UK a lot of times it just is not available because they can’t afford it.
What I am trying to suggest is that one of the reasons we had a large increase in healthcare costs was the purchase of new equipment as soon as it was developed and that now that it’s paid off the rate of increase In healthcare is leveling off or decreasing.
In other words one of reasons we saw such an increase in healthcare was the purchase of new technologies. The real point I’m trying to get references for is that healthcare costs have not been increasing (adjusting for inflation and that kind of thing).
But that has not been explored in depth in discussions of healthcare costs. They are talking as though the rate of rise will continue to increase.
I am in total agreement with you regarding the doctor shortage and the fact that this has not been part of the discussion about healthcare reform.
There has been discussion of the government role on the supply side of health care costs.
As is the case on the demand side, the government should play substantially no role on the supply side.
If left alone, the market will establish doctor compensation that is adequate to attract the necessary number and quality of doctors. To the extent that doctors need financing for their education and training, the market can and will supply this.
Similarly, the government should not get involved in determining the number, size, and equipment needs of hospitals. The private sector is fully capable of doing that, in a market economy.