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Of Interest

How healthcare providers make, spend, borrow and invest money.
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By Melanie Evans

Why we pay much, much more for healthcare

3:15 pm, May. 4

The U.S., we know, spends far more than other countries on hospitals, doctors and other medical care. Now, researchers behind the latest international comparison of health spending have looked at supply of services, use, prices and quality for clues to why spending here is so much greater than a dozen other nations.

Here's a look at how much greater. It's the report's comparison of health spending as a percentage of gross domestic product:

Source: Commonwealth Fund

The Commonwealth Fund report, authored by David Squires, analyzed figures from the Organization for Economic Cooperation and Development.

Data suggest a few possible contributors to the U.S.' big spending, Squires says, with prices as the biggest culprit. Research on commonly used drugs and primary-care doctor fees has found higher U.S. prices compared with other countries, he says. And data suggest notably higher spending for U.S. hospital stays are the result of higher prices or more resource-intense care, he adds.

Source: Commonwealth Fund

The nation's higher obesity rates and greater use of diagnostic imaging devices may also be factors that drive the U.S.' health spending, he says.

You can follow Melanie Evans on Twitter: @MHmevans.

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