Findings from a recent Harvard University study of health care administrative spending in the US and Canada
[Woolhandler, S., Campbell, D. & Himmelstein, D.U. (2003). Costs of Health Care Administration in the United States and Canada.New England Journal of Medicine 349(8),768-775 ]
" In 1999, health administration costs totaled at least $294.3 billion in the United States, or $1,059 per capita, as compared with $307 per capita in Canada. After exclusions, administration accounted for 31.0 percent of health care expenditures in the United States and 16.7 percent of health care expenditures in Canada. Canada's national health insurance program had overhead of 1.3 percent; the overhead among Canada's private insurers was higher than that in the United States (13.2 percent vs. 11.7 percent). Providers' administrative costs were far lower in Canada.
Between 1969 and 1999, the share of the U.S. health care labor force accounted for by administrative workers grew from 18.2 percent to 27.3 percent. In Canada, it grew from 16.0 percent in 1971 to 19.1 percent in 1996. (Both nations' figures exclude insurance-industry personnel.)
Conclusions The gap between U.S. and Canadian spending on health care administration has grown to $752 per capita. A large sum might be saved in the United States if administrative costs could be trimmed by implementing a Canadian-style health care system."
Canada spends much less on administering health care, and the benefit of bulking administration means significant cost savings, but waitlists are too common.
Funny, whenever I see images of overcrowded hospitals on the CBC it's Montreal or Toronot. I've never been in emerge in Vancouver when its chaotic. Busy ouais, but not chaotic. Hmmmmm
[Woolhandler, S., Campbell, D. & Himmelstein, D.U. (2003). Costs of Health Care Administration in the United States and Canada.New England Journal of Medicine 349(8),768-775 ]
" In 1999, health administration costs totaled at least $294.3 billion in the United States, or $1,059 per capita, as compared with $307 per capita in Canada. After exclusions, administration accounted for 31.0 percent of health care expenditures in the United States and 16.7 percent of health care expenditures in Canada. Canada's national health insurance program had overhead of 1.3 percent; the overhead among Canada's private insurers was higher than that in the United States (13.2 percent vs. 11.7 percent). Providers' administrative costs were far lower in Canada.
Between 1969 and 1999, the share of the U.S. health care labor force accounted for by administrative workers grew from 18.2 percent to 27.3 percent. In Canada, it grew from 16.0 percent in 1971 to 19.1 percent in 1996. (Both nations' figures exclude insurance-industry personnel.)
Conclusions The gap between U.S. and Canadian spending on health care administration has grown to $752 per capita. A large sum might be saved in the United States if administrative costs could be trimmed by implementing a Canadian-style health care system."
Canada spends much less on administering health care, and the benefit of bulking administration means significant cost savings, but waitlists are too common.
Funny, whenever I see images of overcrowded hospitals on the CBC it's Montreal or Toronot. I've never been in emerge in Vancouver when its chaotic. Busy ouais, but not chaotic. Hmmmmm
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Date: 2003-11-04 04:40 pm (UTC)no subject
Date: 2003-11-04 06:11 pm (UTC)Any idea on similar analyses involving Oz, though Howard has done a great job deconstructing the public system, no?
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Date: 2003-11-05 08:44 am (UTC)As I keep saying, I'm proud of my country - I'm just not proud of what my Government is doing. I just hope the next election we'll have a visionary within the Opposition - but I'm not holding out hope.