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Sector & Sovereign January Podcast

By Richard Evans

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It is now fairly clear that substantive, politically-driven health reforms are unlikely in the immediate term, raising the question of what happens next. In our most recent webcast, we review why health costs grow more quickly than GDP, and how this might ultimately end. Briefly, we believe that health cost inflation ( i.e. health cost growth in excess of growth in the value of products and services ) is the ‘equilibrium’ state of affairs for the health system as it is presently configured. Only by re-configuring the system, or artificially limiting its growth, can health costs be brought in line with the value of health care products and services. We further believe that growth in health costs will begin reducing real non-health incomes for consumers as early as 2019, and that this ‘event’ becomes an effective catalyst for eventual reform.

Sector & Sovereign January Podcast
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  • Category: Business News
  • Language: English

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