An Economic Picture of Domestic Healthcare Spending

Posted on January 11, 2013 by Dr. David Edward Marcinko MBA MEd CMP™

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By the Numbers

The healthcare component of the U.S. economy continues to expand, with per-capita spending projected to reach $13,000 by 2020. But, at the same, the industry continues to create jobs: 10 of the fastest-growing occupations are in healthcare-related fields.

Driver of the Economy

As one of the largest segments of the US economy, health care accounts for trillions of dollars in spending, both by governments and private individuals. And so, Top Masters in Healthcare decided to take a closer look at where the money goes in this infographic

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health

[The Calculus]

Billing Department

So who does the spending?

  • 21% of healthcare spending is done by private businesses
  • 28% of healthcare spending is done by individual households
  • 16% of healthcare spending is done by state and local governments
  • 29% of healthcare spending is done by the Federal government

Where did the spending go?

  • 37% of healthcare spending went towards hospital care
  • 23.6% of healthcare spending went towards physician and clinical services
  • 5.9% of healthcare spending went towards other residential / health / personal care services
  • 4.9% was spent on dental services
  • 3.3% was spent on home health care
  • 3.2% was spent on “other” professional services

Per capita spending

Between 1960 and 2011, per capita health care spending rose by about 5,400 percent from $147 in 1960 to $8,311 in 2011. If other prices rose like that, here’s what it might look like today:

  • Family Dinner: $176.58
  • Tube of Toothpaste: $13.50
  • Volkswagen Beetle: $95,526
  • Gallon of gas: $13.50
  • Average income: $287,010
  • Electric can opener: $479.52

Emergency Department

The top 5 causes of death are heart disease (24.5%) cancer (23.3%) chronic lower respiratory diseases (5.6%) stroke (5.3%) accidents (4.8%) Alzheimer’s disease (3.2%).

Cardiology

  • 470,000 is the number of people who have a second or subsequent heart attack
  • 785,000 is the annual estimate of the number of people who have their first heart attack
  • $444 billion is the cost of heart disease, from health care services to medications to lost job productivity

Oncology

  • One in two men will get cancer during their lifetimes
  • One in three women will get cancer in their lifetimes
  • $226 billion is the annual cost of cancer, including treatment and lost income

Ongoing Care

  • Nearly 1 billion annual physician visits per year. If you had a doctor visit every minute of every day, it would take 1,902 years to have that many trips.
  • One out of 2 adults has a chronic illness
  • Seven out of every ten deaths are a result of a chronic illness

Obesity

  • The heaviest states by obesity rate are Mississippi (34.4%) West Virginia (32.2%) Alabama (32.3%) Tennessee (31.9%) and Louisiana (31.6%)
  • The lightest states by obesity rate are Hawaii (23.1%) Massachusetts (22.3%) Connecticut (21.8%) District of Columbia (21.7%) and Colorado (19.8%)

Diabetes

  • Diabetes can lead to a slew of other serious health problems including neverous system diseases, blindness and eye problems, heart disease and stroke, kidney disease and hypertension.
  • 25.8 million people are current affected by diabetes, 8.3% of the population.
  • 35% of people older than 20 have pre-diabetes
  • $174 billion is the total cost of treating and ealing with diabetes each year

Personnel Department

  • Healthcare provided 14.3 million jobs in 2008. And that number is only going to grow. In fact, health care is expected to be the single fastest-growing sector of the US economy through 2018.
  • Ten of the twenty fastest growing occupations are in healthcare related fields.
  • 4.01 million new jobs are expected to be created in the health care industry by 2018. Compare that to 2.67 million in science/engineering, 1.68 million in education, 1.43 million in administration support and waste management and 1.3 million in construction.
  • Healthcare professionals earned a combined $886 billion in total salaries in 2010

IT Department

  • As our world becomes more connected by technology, doctors and patients are increasingly using the Internet and data storage.
  • 57% of doctor’s offices use electronic medical records.
  • 6 out of 10 adults have looked up health information online.

Pharmacy Department

  • Almost half of Americans take at least one prescription drug.
  • $35.22 is the average price of a brand name drug which is almost 4x as much as the generic price.
  • Spending on prescription drugs has gone from $40.3 billion in 1990 to $259 billion in 2010 and is expected to grow to $457.8 billion by 2019.
  • The cost to bring a new drug to market is between $55 million and $1 billion
  • The cost of patented drugs in the United States is 35-55% higher than other industrialized nations
  • 80% of FDA approved drugs have a generic counterpart
  • Only 23% of doctor visits don’t include a prescription.

Assessment

The impact of the healthcare industry on everyday Americans continues to grow, whether they see it in their insurance bill or whether they earn their salaries from the health care industry. The issue also continues to dominate the political conversation… there’s no escaping it.

Conclusion

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About TheHeart.org

Posted on August 14, 2010 by Dr. David Edward Marcinko MBA MEd CMP™

ADVERTISEMENT

TheHeart.Org

By Professionals for Professionals

Not one for flash and tinsel, theheart.org is thick with information on the front page. The interface seems based on that used by the New York Times, complete with a “most popular” widget that displays the most visited articles on the site.

Owned by WebMD, which is in turn owned by News Corporation, the site is bereft of fluff and advertisements, instead presenting columns and columns of relevant content. The news and information is as professionally presented as one would expect from an arm of such a worldwide conglomerate, and is aimed squarely at knowledgeable experts.

Membership

Membership is expected, the free registration option is prominently displayed when one first visits the site, and most of its features and content can only be accessed once this is done. Until then, only headlines and tidbits are displayed.

Registration comes in two types: limited access for 30 days, which gives access to their news articles and requires only an email address; and full access, which requires slightly more information and opens up the entire site, including the search and comment functions. Given the quality of the content and the fact that registration is free, it is well worth it for anyone interested.

Focus

The focus of theheart.org is the various diseases and disorders of the heart, and also how to prevent them. By design, the site exchanges breadth for depth–aside from a single section called “Brain/Kidney/Peripheral,” there is no information present that is unrelated to the topic of heart disease. That topic, however, is covered in careful detail. The site would be of little use to a student of human physiology, as the basic anatomy and functioning of the heart is barely mentioned, let alone outlined. It is similarly not designed to lure in the general public, or even patients of heart disease. With titles such as “Antiplatelets in PCI: Doses and Choices” and “The Atrial Septal Pouch–A New Source of Thrombus?”, it is clearly meant to be perused by cardiologists and other healthcare professionals.

Cardiology Excellence

In its chosen area of discussion, however, theheart.org excels. There is nothing sloppy or amateur about this site or the quality of its articles. In fact, it is so professional as to be exclusive, as even the user comments on its posts are often in-depth discussions of medical considerations that a layman would be hard-pressed to decipher.

A doctor, however, could find a wealth of information, news and analysis on the subject of heart functioning and disorders, keeping up-to-date on new discoveries, treatments, medications such as cangrelor and: http://www.theheart.org/article/1024935.do dabigatran, as well as what is happening within the cardiologist community.

Assessment

In summary, there is no shortage of content on the topic of the heart: news articles, blog posts, editorials, and even video and radio programs. A professional in the field of heart health should not fail to become a regular visitor to theheart.org, while a more casual reader would probably find their needs best met elsewhere.

Conclusion

And so, your thoughts and comments on this ME-P sponsor are appreciated. Give em’ a click and tell us what you think! Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites too. Then, be sure to subscribe to the ME-P. It is fast, free and secure.

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A Quality Story all Doctors and Patients Should Re-Read

Posted on January 10, 2010 by Dr. David Edward Marcinko MBA MEd CMP™

[Mis] Adventures in Cardiology

Reposted by Ann Miller RN MHA

[Executive Director]

According to the author of this re-posted e-journal, Johns Hopkins Medicine has a long tradition of prioritizing patients, and striving for the bottom rung that are the anonymous poor.

And, many agree this is true. In fact, our Publisher-in-Chief grew up in Baltimore Maryland and has written about this venerable institution on the ME-P before.

Outliers

If, for example, you catch a bullet on a Baltimore street corner, or your mother presents you at the ER as a feverish welfare child, then it us open season for the medical students, well meaning as they may be. They can practice on you because if  their actions result in an adverse outcome—which is to say that if you are mangled or killed—nobody will question said outcome, precisely because … you are a nobody.

At the other end of the spectrum are wealthy and prominent patients, who get treated by doctors who have already learned what not to do from the mistakes inflicted upon the lower classes.

Of … Quality Medical Care

However, sometimes mistakes happen, and medical errors do occur as we all are human. But, what is reported to have happened to one journalists’ wife – Pam – at Johns Hopkins Hospital in March of 2002 is beyond the pale.

As a middle class citizen, she landed somewhere in the middle of the bell shaped curve. Maybe she got snookered by all the hype from US News into thinking that she was going to be treated by the best doctor at “The Best Hospital in America” … You decide.

Assessment

This is the story of what happened to Pam; as reported by her journalist husband Don.

Link: http://adventuresincardiology.com/

Conclusion

Indignation Index: 96

We trust medical quality guru Bob Wachter MD will opine. And so, your additional thoughts and comments on this ME-Pare also appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, be sure to subscribe to the ME-P. It is fast, free and secure.

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About Hiperwall.com

Posted on January 30, 2009 by Dr. David Edward Marcinko MBA MEd CMP™

Cool New Video Wall Creations – for Medicine?

Staff Reporters56371220

Hiperwall software enables anyone to build a scalable, high performance video wall from ordinary computers, monitors and an ethernet network.

Many Content Types

Hiperwall allows viewing in any combination of content types:

 

  • Ordinary graphic images
  • Extremely large graphic images, up to 1 gigabyte or larger
  • Digital movies, including standard and HDTV format
  • Streaming content from cameras and other live sources
  • Live “sender” feeds that let a room full of people view the constantly changing screen displays of one or more computers

Hiperwall has the ability to resize and relocate each content object anywhere on the video wall, within a single monitor or across multiple monitors. It is as easy as moving and resizing windows on the desktop of your personal computer. Hiperwall also provides advanced capabilities like zoom, rotation, shading and transparency, enabling users to examine content with increased flexibility and effectiveness. It is based on technology originally developed by researchers from the University of California at Irvine, and is now available for use by anyone www.Hiperwall.com

Assessment

Now, what does this all have to do with healthcare? Well, think digital radiology, cardiology, PET, CT and MRI scans, and others graphically intensive specialties? For example, an early client was Stanford University Medical School and Samsung Electronics. Still, with few other clients and only a hand-full of employees, consider overall costs, viability and follow-up support. Nevertheless, on January 24, 2009 – Information Week named the company as the “Startup-of-the-Week.”

Conclusion

And so, your thoughts and comments on this Medical Executive-Post are appreciated; especially from you daring early-adopters, out there! Think PACS [picture archiving and communication systems].

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com  or Bio: www.stpub.com/pubs/authors/MARCINKO.htm

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