Whenever the business thinks that the cost of their business is very high, they use the strategy called benchmarking, which means to set the standards. By this we compare the cost and quality with other competitors; by this activity we found an existing gap. With the help of comparison, we will be able to know that why the cost of medical treatment in U.S are so high as compared to other countries.
A report states that U.S spends about $7000 on the per capita income on the health which is about 2 times higher as compared to other countries like Japan and U.K, and the results are as efficient as these were in Japan and U.K. A difference of about 5 times comes when we talk about the spending money on the doctors. The citizens of America spend about $1600 on the doctors;whereas the other countries spend about $310 on the doctors.
Another problem of specialists rises over here, which says that the cost of specialists is 3-6 times more than the other doctors. This difference is due to higher prices in U.S, and due to the higher price payers in the U.S.
many people have a large amount to pay to the doctor so the doctors charge huge amount from them, and that makes the difference. On the whole the rates of higher specialists doctors working in other peer countries is lower than the rates of primary doctors working in America.
The higher level of per capita income in U.S is another reason why the cost of health on U.S is so high. The per capita income of U.S is higher than any other country in the entire world, and the incomes are linked with the expense of health.
Another reason for the high rates of health care in America is the high rates of drugs that are being used for the betterment of health. The reason behind that may be that, the American government has restricted the purchase of drugs in bulk that may increase the cost of the medicine.
The technology is progressing very rapidly these days, every day there is new technological instrument in the market, this practice of constantly change in technology has increased the cost of the health care in U.S.
Another reason for that may be the replacements of equipment’s of medical, as the medical equipment’s are used only once, and for the next patient, we require the new equipment’s, previous can’t be used.