Restructure Medicare & Medicaid: Social + Economic + Legal Factors
Drive Incentives to Spend
1) Social — Growing + aging population (with related disproportionate spending on end-of-life care) and unhealthy lifestyles.
2) Economic — Healthcare service providers have financial incentives to perform more services and drive revenue while consumers often have little incentive to manage incremental cost.
3) Legal - Rising overhead from defensive medicine (to avoid lawsuits) and from regulatory compliance costs.
KP Source: Morgan Stanley Healthcare Research. www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 281
Restructure Medicare & Medicaid: Social Forces that Push Up
Healthcare Spending
1) Growing and Aging Population 2) Unhealthy Lifestyles
3) Possible Solutions
KP www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 282
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