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The Cost Problem in Health Care

In: Challenges and Opportunities in Health Care Management

Author

Listed:
  • Ronny Reinhardt

    (Technische Universität Dresden)

  • William J. Oliver

    (Brandeis University)

Abstract

Healthcare costs are hotly and widely debated, with conflicting perspectives each claiming individually to explain the rising cost of health care. Yet, the global cost problem in healthcare might not be as simple or clearly understood as some hold it out to be. The following chapter presents and elaborates on five theoretical perspectives for understanding the issues underlying rising healthcare costs. Each of these suggests a different path for costs and cost reduction. On one hand, two of the perspectives suggest the inevitability of healthcare cost increases, either because costs are largely for personnel or because patient demographics reflect adverse global population trends. On the other hand, three of the perspectives imply that healthcare costs might be inflated because of regulatory and industry forces unique to health care. Thus, the chapter challenges overly-simplistic explanations of the cost problem, attempting to frame a more rigorous and thoughtful debate among payers, providers and policy makers.

Suggested Citation

  • Ronny Reinhardt & William J. Oliver, 2015. "The Cost Problem in Health Care," Springer Books, in: Sebastian Gurtner & Katja Soyez (ed.), Challenges and Opportunities in Health Care Management, edition 127, pages 3-13, Springer.
    • Handle: RePEc:spr:sprchp:978-3-319-12178-9_1
    DOI: 10.1007/978-3-319-12178-9_1
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