The dissatisfaction over the state of U.S. health care has many complex causes, including rising prices for health care products and services, especially prescription drugs; population growth and aging; an imbalance of available services, and post-pandemic medical inflation.
These challenges are a barrier between providers and patients. Each further complicates an industry in need of maintenance, and needs to be addressed to improve health care accessibility and availability to patients not just within the confines of Western New York, but across the U.S.
Rising costs
Overall, the U.S. has one of the highest costs of health care in the world; and by comparison, cost per person is nearly double that of similarly wealthy countries.
Over the past 60 years, health care costs have gone from making up 5% of the country’s gross domestic product (GDP) to now more than 18%, and that total is expected to pass 21% by 2032. Additionally, the U.S. Congressional Budget Office projects Medicare spending will nearly double over the next 30 years, growing to a whopping 5.5% of the U.S. GDP by 2053.
These rising costs have had far-reaching consequences in the lives of everyday Americans, causing many to avoid doctor visits, ration prescription medications, or simply go uninsured. These costs are not only an unsustainable burden on practitioners, patients, and their families, they’re also a key driver of the national debt.
Population growth and aging
As growth of the population age 65 or older outpaces growth of younger age groups, the population continues to become older on average—and, in turn, more expensive. Older individuals need more care and costly procedures than younger individuals. They also suffer from more chronic illnesses like diabetes, high blood pressure and cholesterol, urinary disease, and osteoarthritis. All told, the cost of treating these conditions has increased by billions, with diabetes alone responsible for more than $306 billion in direct medical costs per year.
Imbalance of services
Social determinants of health (SDOH) are a major cause of this separation, and can have a significant impact on individuals’ health, wellbeing, and quality of life. Factors like available transportation, education level, access to nutritious foods, and general discrimination all play a part in the type of health care an individual receives—but neighborhood location continues to be arguably the biggest.
While individuals across the whole of the health care landscape are being impacted by the lack of available primary care physicians, underserved and rural communities are becoming even more perilous than they have been, creating a massive barrier to health and wellness for its residents.
Post-pandemic health care
The pandemic uncovered weaknesses in the health care system, which the industry is still dealing with five years on. While prices of health care have returned to pre-pandemic growth rates, the healthcare delivery system continues to face higher costs and wage demands, while impacting the availability (and, in many cases, quality) of services to those in need.
Each of these issues is significant, and will take collaboration and partnerships to address and solve. Fully aware of the challenges the industry faces, Independent Health is working proactively to address concerns. With our programs and partnerships, along with our philanthropic arm, the Independent Health Foundation, progress is being made to address some of the issues currently rattling the health care industry, and better serve the needs of our members and the wider community, and serve as an example to health care organizations across the United States.
Learn what Independent Health is doing to address these challenges in our special report, “Navigating modern challenges in healthcare. How thoughtful initiatives can meet critical industry and patient needs.”
