The View From 1776

A Longer-Term Perspective On Medical Care Costs

How Government Regulations Made Healthcare So Expensive

Posted by .(JavaScript must be enabled to view this email address) on 12/18 at 10:36 PM
  1. Good stuff! Wish I could send Holly a couple additional sources:

    "In 1900, before widespread state restrictions, 5214 individuals graduated from medical school. That number dipped to 3047 in 1920. In 1950, there were only 5553 individuals graduated from medical school -- barely more than in 1900, despite an increase in the US population from 76M to 152M." --- Randall G. Holcombe 1995 _Public Policy & the Quality of Life_ pg 111 (referencing Campion _The AMA & US Health Policy Since 1940_ & _Statistical Abstract of the US_)

    "[A] day's stay in the hospital cost 5 times as much in 1970 as it did in 1950. These incentive problems have existed since the advent of medical insurance, but the negative effects on overall health costs have only manifested themselves since WW2 because health insurance was rare before that time. In 1940 less than 10% of the US population had any health insurance, so while institutions responsible for reducing market forces in medicine were developed earlier in the century, they did not exert a major effect until insurance became more wide-spread." --- Randall G. Holcombe 1995 _Public Policy & the Quality of Life_ pg 129 (referencing Martin Feldstein 1971-12-?? "Hospital Cost Inflation: A Study of NonProfit Price Dynamics" _American Economic Review_ vol 61 pp 853-872 & Burton A. Weisbrod 1991-06-?? "The Health Care Quadrilemma: An Essay on Technological Change, Insurance, Quality of Care, & Cost Containment" _Journal of Economic Literature_ vol 29 pp 523-552)

    and more recently "4 [new MDs] per 100K Americans in 1970 to almost 7 per 100K by 1984.  Since 1984, the number of medical school graduates has been relatively flat (see red line in bottom chart), while the population has continued to grow, causing the number of new physicians per 100K population to decline to only 5.3 per 100K by 2008, the same ratio as back in 1974." --- Mark J. Perry 2012-07-04
    http://mjperry.blogspot.com/2012/07/ama-strongest-trade-union-in-usa.html
    Posted by .(JavaScript must be enabled to view this email address)  on  12/20  at  11:47 AM
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