It’s the Costs, Stupid: Rising Costs Compared to GDP

This is going to be the first of a number of relatively short posts about high health care costs in the US. They are by no means intended to be comprehensive. The graphs are taken from The American Health Economy Illustrated by Christopher J. Conover.

Health care is expensive, especially in the United States. (It’s a good thing you’re reading this so that you can get such non-obvious, hard-hitting analysis!) But how fast is it changing? Since 1929, national health care spending has increased BY OVER 60 TIMES! Looking at Figure 1, it appears that the biggest jump has come since 1989. Certainly, the amount of actual spending increase has occurred during that time, but each of the 20 year increments shows an approximate increase in spending of 2.5 times over the previous era. The actual dollars spent increases significantly in each period, though the relative rate of increase is fairly constant. When I first saw this graph, I was looking for a definitive change since 1989, or maybe from 1949-1969 given the creation of Medicare and Medicaid in 1965, but it’s about the same. That doesn’t mean that spending isn’t increasing, especially when you look at the right side of the graph—real GDP. It certainly is increasing as well, quite a bit compared to the rest of the world. Real GDP increased by roughly 10 times over that same period, as compared to the 60-fold increase in health care spending. What exactly does that mean? It means that we feel the increase in health care costs much more because it grows a lot faster than our nation’s (and especially individual’s) earnings.

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Looking at Figure 2, you see this even more. How much money we spend on health care as a society is taking up an increasing amount of our total spending, but it’s even worse when we look at how much we spend on health care as a fraction of our personal consumption. (There is a discrepancy because only about 70% of GDP is accounted for by personal consumption expenditures [PCE].) Not only do we spend more money on health care, but we spend more of our paycheck on health care, too.

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Not surprisingly then, we see the largest margins of health spending per capita as compared to GDP per capita during years of increased governmental financing of health care, or years of lower GDP growth (Figure 3). I’ll discuss more about why the government’s role in increasing health care costs at another time, but this is just another illustration of how we are paying more and more for health care, no matter what happens with the GDP (there is some slow down during recessions, but health spending still almost always grows more than GDP).

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Note that I am not an economist, and so there is MUCH MORE in depth nuance that can be had on this topic. For further reading, consider the above mentioned The American Health Economy Illustrated, looking into the writings of Victor Fuchs and Uwe Reinhardt, reading The Incidental Economist blog, or the journal Health Affairs, among MANY others.

Patient Record Ownership

I recently wrote about who does, and who should, own patient records at the AAFP’s Fresh Perspectives. This topic is more controversial than I think it should be. It’s your body, it’s your information, it’s your blood, it’s pictures of your body, it’s yours. It’s time to get rid of medical paternalism and move to more shared decision-making (but that’s a topic for later on). In short, I don’t see this as an issue, and I think it is inevitable that patients will own their records in the relatively near future.

Merry Christmas, Regina

 

The average person has about 500 million alveoli, microscopic sacs in the lungs where gas is exchanged in the body. In this location, oxygen moves into the blood to be used by our physical organs, and carbon dioxide transfers into the lungs to be breathed out. Chronic lung diseases such emphysema and chronic bronchitis erode the structure of these alveoli, leading to the feeling of shortness of breath as oxygen is not shifted into the blood very effectively, and carbon dioxide subsequently slowly builds up in your body. Various inhaled medications can help slow down the deterioration, but continuous oxygen is often needed and infections are very common as the lungs find it more difficult to properly recover from common organisms. The prevalent belief among the resident physicians at the formerly known as Her Holy Name Hospital was that Regina only had about three of those 500 million alveoli left. How she was still alive, none of us really knew.


The stench of Regina’s Designer Imposter perfume filled the emergency department, alerting all of its inhabitants to her presence. It was quite a miracle that the perfume didn’t overwhelm her few remaining alveoli, but then the smoke from her cigarettes probably blocked the fragrance from getting that deep in her lungs in the first place. It was unfortunately an all-too-familiar smell in the hospital. The 62 year old woman came here about every 1-2 months due to an exacerbation of her chronic emphysema, which required stronger medications and oxygen concentrations for a short time. I had only been an intern for about 6 months and I already knew her quite well.

This hospital visit occurred 2 days before Christmas, along with large amounts of snow and extremely cold weather. I was an intern working long hours in the hospital, and I was not looking forward to working on Christmas day. Obviously someone needs to work in the hospital on Christmas, and interns are the lowest of all grunts to fill that need. Evidently this “educational imperative” provides some sort of professional character. We’re also very cheap labor.

I had not spent much time with my wife and two sons in recent months, and my absence from home on Christmas would mean that they might all share the same disturbing thought that I myself occasionally had, that I may not still exist in any meaningful way, at least not as it concerned my family.

That being said, I actually found Regina’s salty demeanor and frequent smoke drenched yelling somewhat charming. It had the opposite effect on most people, having proven to be the main cause for driving away all of her family and friends from her life.

“Where is the doctor?!? I need my medicine!” she yelled from her curtained-off room in the ED. Her breathing trouble evidently wasn’t bad enough to keep her voice from carrying.

Her frequent hospitalizations usually occurred when she received a new disability check and could buy her carton of cigarettes. She was unable to resist smoking more than usual just after purchase than to evenly ration it until she could afford more. The extra smoke was too much for her diminishing lungs to take. This was combined with the difficulty in getting her inhaled medication from the pharmacy. The carton of smokes was half a block away, the pharmacy about a mile. It was much easier to call the ambulance and go to the hospital than find a ride to get the medications that would prevent the need for such extreme measures.

The timing of this ED visit was somewhat suspicious as she usually got her check at the beginning of the month, and she didn’t seem to be breathing as poorly as with her typical inpatient stays. I didn’t think too much about it, but proceeded with collecting the history of recent health events and examining her.

The Family Medicine team had already developed its emblematic, caustic cynicism with her as we tended to do with all “frequent fliers”. This feeling was largely born from the judgements inherent in frequently caring for people who had been largely responsible for their chronic health problems, in her case with smoking. This frustration also arose from a subconscious recognition that there was nothing we could do to help her condition long-term, just provide a periodic “tune-up” before sending her back to an empty home filled with heartache. It was a well-earned contempt, though not entirely justified. It was a hollow, lonely feeling of failure for us residents.

“I don’t want a nicotine patch, I need someone to take me outside for a smoke! I’ve been here before, I know how this works, now GET ME A DAMN AIDE!”

Yep, charming is the word.


“Are you sure there isn’t something you can do to get out of working on Christmas?” My wife was trying every possible angle to get me home to be with my kids. I completely understood; I would love nothing more than to stay home. But the result of her constant lamentations had the result of making me feel guilty for skipping out on my family.

“I’m sorry dear, there’s nothing I can do. It looks like we’ll have enough patients that we need the whole resident team there. Hopefully I’ll be able to leave early, but we’ll have to see how it goes.”

I made sure to spend as much time with my boys in my abbreviated evenings before Christmas, hoping that would somehow impress positively upon their young psyches.


As her case was discussed with the team, everyone else noticed the unusual timing of her ED visit and relatively mild symptoms (“relatively” for her, anyways); this hospitalization was because she didn’t want to be alone on Christmas.

Her husband had passed away long ago. She had a son and a daughter, but neither lived in the state. Not only that, but their last interactions had not been pleasant, leaving Regina to wonder if she would ever see either one of them again.

“Good riddance, if you ask me.”

She put on a stubborn, apathetic front, but behind those sullen eyes the pain was apparent.

She had some friends previously, but as with her family, the pattern was repeated—she drove them away. I wondered if she knew how not to drive others away. But her doctors and nurses couldn’t be driven away due to our oath and the law, so she came to the broken hospital for some fractured companionship.


As Regina’s current condition was not too significantly worse than usual, she was ready to go home on Christmas Eve. The problem was that she didn’t want to go.

“I still can’t breathe, and you’re sending me home?!? You can’t send me home yet! Come on you stupid little intern, talk with your head doctor already and tell her that I’M NOT GOING!”

“Your lungs are back to your baseline, there is nothing else that we can do for you right now.” But she wasn’t having it.

“But I don’t have a way to get home.”

“We can give you a taxi voucher, like we usually do.”

“But the pharmacy won’t be open for 2 days, so I won’t have my meds.” She was throwing out any excuse she could find. She knew the pharmacy defense was likely to work on us.

“We can make sure that you have enough at discharge until the pharmacy opens.”

Just then, she began to pant and breathe heavy. She was complaining of chest pain and immediate severe shortness of breath. I quickly listened to her lungs and heart, but I heard nothing out of the ordinary; her three alveoli were functioning as good as possible. Whether she just spoke the magic words of “chest pain” to get our attention, confused her emphysema shortness of breath with a heart attack, had some heartburn, was having a panic attack, or was actually having a heart attack, I can’t for certain say for sure, but I have my theories. The best way to stay in the hospital is to complain of chest pain when you have legitimate risk factors, as she did. We would have to ensure that she did not have a heart attack with some tests. It looked like she and I would be spending Christmas together after all.


The morning of Christmas Eve, before my interaction with Regina, I cried as I was getting ready. I didn’t want to work on Christmas the following day. The guilt of leaving my family on the holiday briefly brought on the thought of calling in sick tomorrow, but that would be horribly cruel to my team and whoever would need to be called in among my resident colleagues to take my place on the biggest holiday of the year. I don’t know if I actually had the realization at that time or if I have since attached this to my intern-self retroactively, but this proved to be part of the erosion of the structure of my own spirit, acting as a symptom rather than an isolated occurrence of my unraveling psyche. I prayed for a miracle.

That day we ended up discharging a large percentage of our patients without admitting very many. Because of the lighter patient load for Christmas, my senior resident then acquiesced to my greatest current, but unspoken, desire—I didn’t have to work on Christmas. My fellow intern had volunteered to work the 25th if I would work on January 1st. He didn’t have kids and so didn’t feel too bad about missing any Christmas day festivities. While it was only a small step in healing my overburdened psyche, it produced immediate dividends in my well-being. I don’t think that even now he knows that he was an answer to heavenly plea.


As per Regina’s desire, she was not alone on Christmas, even though all of her tests unsurprisingly came back normal. As per my desire, I also was not alone on Christmas. I got to watch my kids open their presents, and I’m glad that I did. For at least one day, the structure of Regina and my alveoli-laden lives did not deteriorate, and in our own weird ways, we proved to ourselves that we do exist in some meaningful social level. I’m not sure that Regina and I are very different after all.