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The Roundtable on Population Health Improvement, a convening activity of the National Academies of Sciences, Engineering, and Medicine, held a workshop on March 15-16, 2021, to explore issues related to increasing health care spending in the United States. The workshop, U.S. Health Care Expenditures: Costs, Lessons, and Opportunities, was organized to highlight the persisting challenge of health care expenditures that are not commensurate with the health outcomes they produce. This publication summarizes the presentation and discussion of the workshop.
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Kristian Gjessing's medical dissertation investigates the impact of medical and non-medical factors on the quality and costs in primary care. The study explores how physicians and patients' decisions can be influenced by sociocultural environment, fear of making mistakes, economic factors, and communication quality. It also looks into the effects of socioeconomic background, perceived morbidity, and patient's desire to consult a doctor or use medications. The research is based on data from two primary healthcare centers in Norway and the ABIS study. The findings suggest that primary care physicians' referral diagnosis distribution may be affected by their continuity and length of employment. Additionally, influenza-like illness in children carries substantial costs and parents' perceptions of morbidity and socioeconomic factors seem to influence antibiotic demand in children.
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January 2000 - Despite the great benefits from preventing malaria, the fact that vaccine demand is price inelastic suggests that it will be difficult to achieve significant market penetration unless the vaccine is subsidized. The results are similar for bed nets treated with insecticide. Cropper, Haile, Lampietti, Poulos, and Whittington measure the monetary value households place on preventing malaria in Tembien, Tigray Region, Ethiopia. They estimate a household demand function for a hypothetical malaria vaccine and compute the value of preventing malaria as the household's maximum willingness to pay to provide vaccines for all family members. They contrast willingness to pay with the traditional costs of illness (medical costs and time lost because of malaria).
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We use data across states to examine the relation between HMO enrollment and medical spending. We find that increased managed care enrollment significantly reduces hospital cost growth. While some of this effect is offset by increased spending on physicians, we generally find a significant reduction in total spending as well. In analyzing the sources of hospital cost reductions, we find preliminary evidence that managed care has reduced the diffusion of medical technologies. States with high managed care enrollment were technology leaders in the early 1980s; by the early 1990s those states were only average in their acquisition of new technologies. This finding suggests managed care may have a significant effect on the long-run growth of medical spending.
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