Increasing Cost of Helath Care

The cost of health care in the United States has been increasing at an alarming rate. Several years ago, prior to the 1980’s when resources for health care seemed to be unlimited, there were few believers in the concept that health care costs had to be reduced or even contained. However, in the 1980’s, when the amount spent on health care in the U.S. began to increase by about $30 to $50 billion dollars per year, those who paid for the care of patients started looking for ways to decrease the amount spent on health care.
Studies conducted by researchers at the RAND Corporation showed that as much as one-third of medical care provided to patients could be considered unnecessary or of little benefit. As a result several groups including the federal government, launched ambitious efforts to measure and improve the quality and effectiveness of medical care.
Methods adopted, many of which are still in existence, include the use of generic drugs, fixed fees for services (regardless of...