Matthew Holt points to an article that explains why. Two reasons: defensive medicine and a fee-for-service payment system.
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I have seen some self-serving selective summarizing in my day but that was stellar, Doc!
Other reasons suggested [and ignored here]: high cost of goods and salaries of health care workers and over-utilization.
On the other hand, Anderson et al. (2003) [15] stated that “It’s the Prices, Stupid”, arguing that the high cost of health care in the US results from the price of goods and services (salaries of those that work in the health system, pharmaceuticals etc.) being much higher in the US than in other countries. They later presented evidence that supply constraints and cost of malpractice claims are not major factors in the high costs. [16]
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