Why is Health Care Expensive?

I heard a story the other day that helped to frame a problem in the public debate on the cost of healthcare. As healthcare costs soar, there is a pervasive belief that the cost of healthcare is a result of profiteering companies or simply inflation. This belief goes counter to my personal experience in the highly competitive medical device supply business. Costs are and have been driven relentlessly down in all categories, so what is the disconnect? Perhaps we should get to the story...

The patient in question was female, age 93. The patient preconditions included obesity with hypertension, and diabetes. In addition to the significant complicating factors, the patient cannot walk from one side of her room to the other due to knee damage. A knee replacement is required to fully repair the damaged knee. What are our choices?

...he hospital chose to do the procedure. The patient ended up in ICU for a month after the procedure. Imagine the cost. A $25,000 knee replacement, plus a month in the ICU with significant rehab. Additionally, the patient came close to perishing in the effort. The final bill was undoubtedly more than $200,000, which allowed her to walk from one side of the room to the other. The adjustments caused by this new found freedom then stressed the other knee causing the same failure, and a return to the bed. In effect, medicare had just purchased the patient a house that she cannot live in.  Continue here....

-- Laurence Sampson