Reducing Health Care Costs by Reducing the Need and Demand for Medical Services
James F. Fries, C. Everett Koop, Carson E. Beadle, Paul P. Cooper, Mary Jane England, Roger F. Greaves, Jacque J. Sokolov, Daniel Wright, for The Health Project Consortium
Since this article has no abstract, we have provided an extract of the first 100 words of the full text and any section headings.
Health care costs in the United States exceed 14 percent ofthe gross domestic product, far more than in any other nation.Overall costs were $838 billion in 1992, or over $3,000 perperson1. Well over 30 million Americans are uninsured, partlybecause of rising premium costs2,3. We propose an approach topart of this problem that has been neglected, one that focuseson systematically reducing the need and thus the demand formedical services. This approach requires expanding the definitionsof "health promotion" and "preventive care," paying selectiveattention to strategies that have been found to result . . . [Full Text of this Article]
A Theoretical Solution -- Reducing the Need and Demand for Medical Services
The Potential for Reducing Demand
Much Disease Is Preventable
Risky Behavior Costs Money
Variability in Regional Costs Implies Slack in the System
Self-Management Can Result in Savings
Care for Terminal Illness Has Become Extraordinarily Expensive and Inhumane
Health Promotion at Work Has Successfully Reduced Costs
Redefining Health Promotion
Who Will Pay?
The Health Project
Problems and Caveats
Conclusions
Source Information
From Stanford University, Stanford, Calif. (J.F.F.); C. Everett Koop Institute, Hanover, N.H. (C.E.K.); William M. Mercer, New York (C.E.B.); Prudential Insurance Company, Newark, N.J. (P.P.C.); Washington Business Group on Health, Washington, D.(M.J.E.); Health Net, Woodland Hills, Calif. (R.F.G.); Sokolov Strategic Alliance, Los Angeles (J.J.S.); and the Tau Group, New York (D.W.). In addition to the study authors, the following persons are members of the Health Project Consortium: Charles B. Arnold, M.D., Metlife; Charles R. Buck, Jr., Sc.D., General Electric; Bruce Fried, Clinton Transition Team; Ron Hartwig, Hill and Knowlton; James Harrell, Dept. of Health and Human Services; Karen Ignagni, AFL-CIO; Dorothea R. Johnson, M.D., AT&T; Johannes Kuttner, the White House; James Marks, M.D., Centers for Disease Control and Prevention; Richard F. O'Brien, General Motors; Robert E. Patricelli, Value Health; Roger B. Porter, M.D., Office of Policy Development, the White House; Dallas L. Salisbury, Employee Benefit Research Institute; Jack Shelton, Ford Motor Company; John F. Troy, the Travelers Insurance Companies; and Reed Tuckson, M.D., Charles R. Drew University.
Address reprint requests to Dr. Fries at 1000 Welch Rd., Suite 203, Palo Alto, CA 94304.
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