Why is medical care so expensive? It depends on who you ask. Victor Fuchs (1996) polled 46 health economists, 44 economic theorists and 42 practicing physicians. Fuchs asked if they agreed with the following statement: “The primary reason for the increase in the health sector’s share of GDP over the past 30 years is technological change in medicine.”
- Health Economists: 81% agree,
- Practicing Physicians: 68% agree,
- Economic Theorists: 37% agree.
Is technological change the force driving increased health care costs? It depends who you ask.