2010: Advent of the Affordable Care Act
– All Americans will be required to be insured
– Forces (previously-uninsured) healthy individuals into the general insurance pool
– This addition would (theoretically) add significant revenues while driving down costs per insured individual
The addition of millions of “healthy people” into the health care system was a boon for: Insurance Companies (In India, start focusing on Insurance leaders listed at NSE)
While insurance companies’ profits soared, physician salaries continue to stagnate or decrease
Effects of the Affordable Care Act – Increased government control of health care—contrary to its good intentions—generally erodes free market forces, causing or enabling severe inefficiencies
The Present State of Costs – “U.S. health care spending grew 5.3 percent in 2014, reaching $3.0 trillion or $9,523 per person. As a share of the nation’s Gross Domestic Product, health spending accounted for 17.5 percent.” Health care costs remain at unsustainable levels.
“Physicians are overwhelmingly stressed out and unhappy.” “In a 2008 survey of 12,000 doctors, just 6 percent of respondents reported having a ‘positive’ morale.” “The majority of physicians also reported not having enough time to spend with patients. Why? Too much paperwork.”
The Golden Age of Medicine is Officially Over.
The (Bleak) Future of Medicine
? Huge pressure to reduce costs
? Growing discontentment among doctors
? Decreasing salaries despite increased physician output
? Doctors aren’t stupid… and they’re looking for greener pastures
? Theoretical downside is a poorer quality of future physicians
? Remaining doctors are over-worked ? more unhappiness, more burnout!
? The “best and brightest” in US are decreasingly choosing medicine as a career.
? Increasing workloads & stress
? Declining income
? Increasing liability
The (Hopeful) Future of Medicine
? Technological advances are bringing us closer to a new “AI-patient” relationship
? AI will lead to improved diagnosis and treatment algorithms, and at a fraction of the cost
? Doctors are already partnering with big data: pooling knowledge and collective patient experiences
? We are digging our own graves!