Why Americans pay more for health care ?

The United States spends more on health care than comparable countries do and more than its wealth would suggest. Here’s how—and why.
Diana M. Farrell, Eric S. Jensen, and Bob Kocher
The McKinsey Quarterly DECEMBER 2008

In This Article
Exhibit 1: Health care spending in the United States is far above the expected level, even after adjusting for relative wealth.
Exhibit 2: The United States spends nearly $650 billion more on health care than might be expected, with outpatient care accounting for over two-thirds of this extra spending.
Exhibit 3: Delivering care in an outpatient settings saves $100 billion to $120 billion in inpatient costs­ but reduces above-expected spending on outpatient costs by very little.
Exhibit 4: Same-day hospital care and visits to physicians’ offices contribute the most to the overall growth in spending for outpatient care.
Exhibit 5: Drug prices for comparable products are 50 percent higher in the United States than in other OECD member countries.
Exhibit 6: The US health system’s payment structure has a strong impact on the cost of health administration and insurance.