The United States (U.S.) healthcare system is a global leader in innovation but faces a critical challenge: its high cost. In 2023, healthcare consumed 19% of the U.S. Gross Domestic Product (GDP)—nearly double the average of other Organization for Economic Cooperation and Development (OECD) nations—without delivering significantly better health outcomes.

The percentage of healthcare consumption of the U.S. GDP has been doubling every 10 years. For example, the percentage of GDP consumption for healthcare was 4% in 1984 and now represents 19%. This is caused by rising unit pricing including healthcare services and prescription drugs, technological advancements, administrative costs, healthcare labor costs, and increased inpatient and outpatient utilization from expanded disease burden.

These rising costs create widespread repercussions. Patients struggle with access to care, delays, and crushing medical debt, while providers and health systems face resource constraints and mounting administrative burdens. Disruption is needed to transform care delivery. We must prioritize cost reduction alongside quality improvement. By embracing evidence-based medicine, we can streamline care, focus on proven, cost-effective treatments, and enhance accessibility and affordability. This approach benefits everyone: improved patient outcomes, fewer unnecessary treatments, and a more sustainable healthcare system.

This month, I share my thoughts regarding my top three recommendations to make our healthcare system more efficient and effective.

1. Adopt Value-Based Care Models: Transitioning from fee-for-service to value-based care can enhance patient outcomes while controlling costs by focusing on the quality rather than the quantity of services provided. This works when insurance is applied in a pre-payment model which rewards prevention and quality. This approach prioritizes high-quality treatment tailored to patient needs and measurable outcomes. By focusing on value and efficiency over volume, we can streamline processes, eliminate unnecessary tests or procedures, and improve overall effectiveness. Value-based care ensures resources are used wisely to deliver better results while controlling expenses.
2. Enhance Preventive Care and Population Health Management: Investing in preventive measures and managing population health can reduce long-term healthcare costs by addressing health issues early and promoting healthier lifestyles. Investing in preventive care and population health management is a powerful way to reduce healthcare costs. By focusing on illness prevention, early intervention, and proactive treatment of chronic conditions, we can save resources while improving outcomes. Strategies like vaccinations, screenings, and lifestyle changes help detect health issues early, when they are easier and less expensive to address. Tackling social determinants of health and improving population health also reduce long-term care demands and associated costs.
3. Leverage Technology and Telehealth: Implementing telehealth and optimizing electronic health record systems can improve care coordination, reduce unnecessary visits, and lower administrative costs. By leveraging technology and data analytics, we can reduce healthcare costs without compromising patient care. Tools like electronic health records (EHRs), telehealth, and analytics streamline workflows, optimize resources, and highlight cost-saving opportunities. These solutions enhance decision-making, enabling targeted interventions to improve cost-effectiveness while maintaining safety and quality. Healthcare organizations that are agile and capable of integrating new technologies and innovative strategies will play a pivotal role in transforming the American healthcare system. Specifically, those that embrace value-based care models, prioritize preventive measures, and harness the power of technology and telehealth will emerge as leaders, paving the way for others to follow.

In future blogs, I am eager to describe the intricacies involved in each of these areas.

These images are credited to my favorite data sources, Statista and The Commonwealth Fund and provide visual context for the US healthcare cost vs comparative quality data across the globe.

Dear College of Medicine Community,

As Veterans Day approaches, I want to take a moment to express our heartfelt gratitude to those who have served in our armed forces. Our veterans are remarkable individuals who have answered the call to protect and defend the freedoms we cherish. These heroes embody the values of duty, honor, and unwavering commitment to our country.

This Veterans Day, let us come together to recognize not only their sacrifices but also the sacrifices made by their families, who have stood by them through every challenge. Remember those we have lost, honor those still with us, and take inspiration from the courage and resilience of the veterans among us at CNU and across our hospital network.

The men and women who have worn our nation’s uniform inspire me every day, and I take great pride in working alongside the many veterans here at CNU and throughout our hospital network.

With deep gratitude,
Rich

Photo taken in 2018, during the unveiling of these statues, at National Harbor which features several military soldiers that honor the U.S. Armed Forces. The collection, titled “America’s Team - Protecting Your Freedom,” was introduced on Veterans Day 2018 and includes five statues representing each military branch (Coast Guard, Air Force, Army, Marines, and Navy).
Designed by Ivan Schwartz of Studio EIS. Photo courtesy of my personal photo library 🙂.

Richard S. Isaacs, MD, FACS
Dean California Northstate University College of Medicine
Senior Vice-President of Medical Affairs and Chief Academic Officer
Professor of Otolaryngology-Head and Neck Surgery