Restructure Medicare & Medicaid:
Observations About America’s Healthcare System
1) High Expenses — however measured, the costs are high: a) total dollars; b) share of GDP relative to other countries; c) cost relative to ability to pay (government, business, or individual), and
2) Inefficiencies — both the data and the insights of doctors, nurses, patients, and healthcare professionals identify opportunities for more efficient communication, data sharing and cost saving.
KP www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 269
Restructure Medicare & Medicaid: Mathematical Challenge Related to
Government Healthcare Programs Facing USA Inc. per CBO Forecasts
Medicare & Medicaid Have Been Crowding Out Spending for Other Federal Programs and are Projected to Exceed All Federal Revenue by 2080E
Federal Revenue & Medicare / Medicaid Spending as % of GDP, 1965 — 2080E
FE i Federal Revenue as % of GDP
(forecast based on historical trend line)
Federal Spending on Medicare & Medicaid as 5% % of GDP
Federal Revenue & Medicare / Medicaid Spending as % of GDP
0% 1965 1975 1985 1995 2005 2015E 2025E 2035E 2045E 2055E 2065E 2075E
P Source: CBO Long-Term Budget Outlook alternative fiscal scenario, 6/10. (@E) www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 270
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