The Federal government covered 26% of medical costs, with Medicaid covering $421.2 billion, Medicare, $572.5 billion, and private health insurance $917.0 billion. Patients paid $328.2 billion in out of pocket costs on their health plans.
Layton, Utah (PRWEB) May 30, 2014
Med-Certification, a provider of online medical career training and certification, recently broke down health care figures in the United States based on recent years data. The percentage of money spent on health care against what Americans spend for everything else (gross national product) is 17.2%, for an incredible total of $2.8 trillion. Of that, hospitals received $882+ billion, providers (physicians) $565 billion, prescription drugs $263.3 billion, and other professional services (physical therapy, optometry, chiropractic) $76.4 million. That's about $9000 per person.
With such staggering numbers it begs the question. "Who paid for it all?" The Federal government covered 26% of medical costs, with Medicaid covering $421.2 billion, Medicare, $572.5 billion, and private health insurance $917.0 billion. Patients paid $328.2 billion in out of pocket costs on their health plans.
Med-Certification management emphasizes the importance of understanding who pays for health care, because hospital charges represent about a third of total health care spending. That totals more than what's spent on doctors, drugs, nursing homes or any other category-type of care.
Physicians engaged in patient care generated $1.6 trillion in economic activity and supported 10 million jobs nationwide in 2012, according to a new report by the American Medical Association. Physicians thus had a greater economic impact than did higher education, legal services, and any other player in health care.
Furthermore, the expenditures for physician services show that for every dollar spent for their services created an additional $1.62 in other business activity. That makes doctors major economic contributors for jobs, real estate, office overhead, and of course taxes in the communities served. The extrapolated contribution in actual dollars shows that astonishing $1.6 trillion. Additionally, the same physicians generate substantial revenue for the hospitals, projected at $1.4 million per physician, per year.
Regulation and Economics
Government representatives and agencies pushing for lower physician reimbursement and continually placing more regulatory road blocks into private practice are suggested to thoroughly understand the real economics of the process before initiating ever more policies. It becomes far less appealing to spend the years required in medical training to embark on a career that is so mentally and physically intense to anticipate wasting so much valuable time on issues that steal away the time spent practicing medicine.
Hospitals, ever constantly on the lookout for either survival or profits continue to buy up private practices, but that action means the physician economic contribution will decrease accordingly. There exists a problem though. In the trenches, the ancillary staff shoulder much of the work required to make a practice work, medical assistants, nurses, managers, coders and billers.
Med-Certification.com is committed to provide the training to do a great job for providers, whether doctors or hospitals. To learn more about the health care industry, its economics, or training and certification, visit med-certification.com or call 1-888-771-1902.