The U.S. healthcare system has been facing financial crises, but it has currently been more severe than ever. Patients, healthcare workers, and hospitals are all facing this pressure with consequences affecting access, cost, and the quality of care. It is important to understand these crises as they eventually affect everyone.

Why is the Healthcare System “Broken?”

• Healthcare workers and hospitals have been receiving the lowest payments in decades from private insurance companies and government programs

• The Covid-19 pandemic has caused inflation, which made staffing and medical supplies more expensive

• There are emplaced mandates where the government increases the cost of treatments without additional funding

In 2022, more than half of the hospitals in California were losing money and 1 in 5 hospitals are at risk of closure.

Financial Crises on Patients:

• An estimated 107 million adults in the United States carry some form of medical debt, which can prevent them from receiving care and cause financial instability. Medical debt disproportionately affects low-income and underserved communities

• Families without insurance have to pay high out-of-pockets costs and unexpected bills, which would continue placing burdens on them.

• Even with insurance, negotiated prices don’t always cover the full cost of care and could remain expensive

Healthcare in the Future:

• Hospitals would continue to face immense pressure, rural facilities would be forced to shut down

• Insurance and cost of care would increase for everyone, hindering the ability for underserved communities to receive care

• According to McKinsey & Company, medical debt will remain a major issue until the government intervenes.

Solutions:

• Expand insurance coverage for underserved communities and increase accessibility to healthcare in rural areas

• Hold private insurance companies and pharmaceutical companies accountable for profiting off of underserved communities by quadrupling the cost of basic medications

• Reimburse or increase funding for hospitals and medical institutions so they can survive financially and continue providing care

Financial Crises in the Healthcare System

Sources and Citation: