Despite the high expenditures in the United States, outcomes are still poor compared to other nations. Why is there a mismatch between healthcare spending and outcomes in the United States?

The United States has a significantly higher healthcare budget than any other country, but still suffers from poorer health. It is believed that this discrepancy in health outcomes and costs can be attributed to the high administrative expenses associated with a fragmented U.S. Healthcare system. This system lacks coordination between providers, resulting in a mismatch. Due to the fragmented healthcare system in America, providers are more likely to use services which aren’t always evidence-based or necessary. The result is unnecessary expenditure without improvement of patient outcomes. In addition, the U.S. faces other structural problems such as a lack of primary care doctors and an excessive reliance on costly specialty care.

Moreover, reimbursement models for providers tend to reward volume over value-based decisions leading to poor clinical decision-making and excessive treatment. Finaly, the pharmaceutical industry has enormous power over pricing prescription drugs. This creates additional financial burdens for families and patients who are faced with astronomical out-of pocket costs for essential medications but which they cannot afford. Together, these factors are to blame for the disparity between US healthcare expenditures and results.