U.S. Healthcare Costs, Medical Malpractice, and Pharmaceutical Ads

Posted by Anthony Lee Jul 25, 2009

This week, I am posting two blog entries, both of which are a major departure from my usual musings. Instead of disease or the inner workings of the medical profession, I would like to discuss rising healthcare costs in America.

President Barack Obama is working to provide health coverage for the uninsured, an effort I applaud given how the issue has always been all talk and no action. At the same time, I am reminded of factors that could possibly drive up healthcare costs. After all, a problem is best solved from multiple angles, including the root causes (why costs are rising) and the end consequences (the now increased costs). While generating money to fill health insurance gaps is a start, one might also want to think about the following issues:

Malpractice Jury Awards

• Problem: Award money for pain and suffering in medical malpractice cases can be so excessive that malpractice insurance for doctors spins out of control.
• Suggestion: Legislate a cap on noneconomic damages for medical malpractice cases or, ideally, set up a medical court system.

Fear of Malpractice Litigation

• Problem: Doctors fear litigation and order unnecessary tests to prevent losing a lawsuit, if it occurs.
• Suggestion: While doctors should openly admit mistakes if they do happen, nonmedical people should understand that malpractice means negligence with standard of care, not unsatisfactory results despite the doctor's best efforts.

Pharmaceutical Ads

• Problem: Pharmaceutical companies spend much money on advertising to both consumers and doctors, often more than research and development of the drugs themselves.
• Suggestion: Drug advertising should never be directed to the consumer, and doctors should be free to objectively evaluate new drugs on the market without influence by the drug companies.

For more thoughts on U.S. healthcare costs, see my other blog entry.