Healthcare costs continue to rise every year. So what is driving the cost of healthcare up? It turns out there are multiple factors at work that are driving up healthcare costs in America. The single biggest reason why healthcare costs are rising is the fact that the cost of care, such as seeing a doctor is increasing. This inevitably raises the total amount of healthcare costs. More people getting more intensive healthcare and procedures is another factor in the increase for healthcare spending.
The Journal of the American Medical Association found that an increasing population also increased healthcare spending. This makes perfect sense because the more people you have, the more healthcare services they will require. More services rendered will increase the expenditure on healthcare in an economy.
An aging population is another factor that is increasing the cost of healthcare. Older people naturally require more healthcare in their stage of life than younger people. They may require constant medication, checkups, periodic procedures and surgeries. The aging population is driving up healthcare spending in the United States and it look like this trend will continue in the near future.
An interesting thing found in healthcare studies was the fact that disease prevalence has actually lessened the cost of healthcare. This decrease of cost has been negated by many other factors though such as an aging population. Using healthcare services frequently does not seem to raise healthcare however although it may raise total expenditure.
One way to make healthcare more affordable is to make it more effective. This is what Eric Lefkofsky is trying to do with his new healthcare company called Tempus. Mr. Lefkofsky is am innovator in businesses that use big data and analytics to serve clients with marketing and logistics services.
According to Eric Lefkofsky, the goal of Tempus is to make healthcare more effective in treating diseases such as cancer by making it more personal. Tempus allows physicians to analyze data from past patients that have been treated and use it to determine an effective treatment for their current patient. The firm also provides genomic sequencing services to make the treatment for cancer and other diseases as targeted and effective as possible.