If something cannot go on forever, it will stop.
Such simple truths can often be elusive. Unsustainable systems by definition cannot persist, a notion which will hopefully impart patience unto those who wish to overhaul entire systems in one drastic action.2 Healthcare is but one example of a system subject to overwhelming criticism. In fact, more than 80 percent of U.S. adults believe the health system needs either “fundamental changes” or “a complete rebuild.”3 Because each person is unavoidably a stakeholder, there is vast public and private interest in the topic. Healthcare is an economic concern because it represents a sizable sector of the economy by any measure. Consumption of medical care and goods accounts for the largest share of consumer spending, which is in turn the largest component of GDP (Figure 1). Expenditures are driven higher by prices, utilization, technology and demographic trends. The federal government’s budget is dominated by healthcare spending through Medicare, Medicaid and other mandatory spending programs. All of these factors make economics an important part of any discussion about healthcare.
