Where Does All the Healthcare Money Go?

Why is the cost of healthcare going up when doctors’ reimbursement keeps going down?If doctors are getting paid less and less by managed care insurance companies, why is the cost of healthcare rising exponentially in the country? Just look at the stock returns of these same insurance companies. And while physicians on average have seen about a 95% decrease in reimbursement in the last ten years, compare this to the compensation of the CEOs of these companies: $358 million for one CEO of a health insurance company.

If you add the total compensation of the top ten insurance company CEOs, this equals 1/900 of the total healthcare expenditure of the United States. In other words, 1/900 of all the money spent on healthcare in the US goes to ten people.

Peter Polack

Author

Peter Polack

Peter J Polack is founder of emedikon, a medical practice management consulting firm and president of protodrone, a software development company specializing in medical practice applications. A technology columnist for Ophthalmology Management Magazine, he is a managing partner of Ocala Eye, a large multi-specialty ophthalmology practice in north central Florida. Email ppolack@emedikon.com


Leave a Reply

You must be logged in to post a comment.

How to Blow $100K
on an EMR System
in 6 Easy Steps!
Free White Paper

Here's how to avoid these
6 mistakes that could
torpedo your EMR project.

EMR Electronic Medical Records White PaperSubscribe to our monthly newsletter packed with insider know-how and we'll send it to you: