Inefficiency in the U.S. Health Care System:

Policy Reports | Health

No. 182
Friday, April 01, 1994
by John C. Goodman, Aldona Robbins, and Gary Robbins

We do not always spend health care dollars in the most productive way. The way we pay for health care encourages both patients and physicians to overuse resources. On the average, every time a patient spends a dollar on health care, 79 cents of it is paid by employers, insurance companies, government and charitable giving. That encourages patients to purchase services that they would not purchase if they paid the full bill.

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