Think About That...
e USA per capita healthcare spending is 3x OECD average, yet the average life expectancy and a variety of health indicators in the US fall below average.
e But if you spend way more than everyone else, shouldn’t your results (a.k.a. ‘performance’) be better than everyone else’s, or at least near the top?
e Should you examine sources of waste/inefficiency given lower output despite greater input?
e Definition of ‘Performance’ = Amount of useful work accomplished given certain amount of time and resources.
e Definition of ‘Efficient’ = Obtains maximum benefit from a given level of input of cost, time, or effort.
Note: OECD data adjusted for Purchasing Power Parity. * Lifetime healthcare costs = life expectancy (years) x per capita KP healthcare spending ($ per year, 2006). Source: OECD, US Dept. of Health & Human Services. (@)E) www.kpcb.com USA Inc. | Income Statement Drilldown 113
Patient Protection and Affordable Care Act (PPACA)
PPACA — America’s new healthcare reform legislation, signed into law on 3/23/10 — creates some reason for concern that it could become an unfunded entitlement.
KP a USA Inc. | Income Statement Drilldown 114
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