Doctors' Compensation Increases By 97% Since 1997
Posted on Thu, Jun 10, 2010
Why are medical insurance costs and medical treatment costs going up so much?
Well, according to the California Healthcare Foundation, inflation accounts for 51% of the growth in health care spending. The Foundation has also noted that American doctors earn two to three times as much as doctors in other industrialized countries. With more and more physicians becoming specialized, physicians are able to charge up to twice as much as primary care physicians. In fact, between 1997 and 2006, Dermatologists' compensation increased by a whopping 97%! Following that trend were Gastroenterologists, which benefited from a 78% increase in compensation in that same time period, and Radiologists who saw a 65% increase in their income in that same time frame. Another big factor in medical treatment costs is the types of treatments Americans are seeking. While technology may improve care, its contribution to medical care spending growth ranges from 38% to 65%.
While more and more people turn to prescription drugs, their cost grows exponentially. In the U.S., half of all adults take at least one drug a day, and 7% of all adults take at least 5 drugs a day. Between 1997 and 2007, prices for prescription drugs grew at an average rate of two and a half times inflation. It sure is costly...a new cancer drug can cost $100,000 or more per treatment regimen.
Lifestyle factors also contribute heavily to the cost of medical care. Did you know that chronic medical conditions accounts for about 75% of the more than $2 trillion spent on medical care yearly in America? Then, consider that 80% of seniors have at least one chronic condition, and 50% of seniors have at least two chronic conditions. Chronic medical conditions are growing at an alarming rate in this country. In 1996, 7% of Americans had more than three chronic conditions. Just 9 short years later, that percentage rose to 13%. For ages 80 and older, it went from 38% to 54%.
It is estimated that 10% of all medical costs are directly attributed to obesity, and 10% are directly attributed to tobacco use. 60% of Americans lead a sedentary lifestyle and don't exercise, and 60% of Americans have a BMI (body mass index) that exceeds the recommended BMI. If Americans adopted a healthier lifestyle, you can see how medical costs could diminish over time.