How Administrative Costs Drive Healthcare Costs

The video discusses the complexity and high administrative costs of the US healthcare system. It highlights studies showing that a significant portion of healthcare expenditures is due to administration, comparing US costs with other countries. The video also examines the administrative burden on hospitals and physician practices, emphasizing the impact of billing-related activities. The complexity of dealing with multiple payers and the rising costs associated with patient billing are also explored, illustrating the challenges and inefficiencies in the system.

What percentage of American healthcare expenditures was estimated to be due to administration according to a study in the New England Journal of Medicine?

• 30%

• 40%

• 20%

• 10%

Which country was second to the United States in hospital administrative costs?

• France

• Canada

• The Netherlands

• Germany

How many additional people are engaged in billing-related activities for every 10 physicians in the US?

• Three

• Five

• Seven

• Nine

What percentage of revenue from primary care visits is accounted for by billing functions?

• 20%

• 15%

• 10%

• 5%

By 2012, what percentage of total health expenditures was accounted for by billing-related costs?

• 17%

• 16%

• 15%

• 14%

What is one major source of complexity in the American healthcare system?

• Lack of technology

• Multiplicity of payers

• Limited healthcare plans

• Single payer system

What happens to the payment rate for larger bills over $200?

• It falls to 67%

• It remains the same

• It increases to 90%

• It is fully covered by insurance