Consciousness-Based Education - Maharishi University of ...

consciousness-based education and governmentGrowth of Medical Expenditures in the United States: 1929-1993Figure 1: Data source: Health Care Financing Administration.1. insurance coverage and premium subsidies (third-party payment);2. lack of price competition among providers;3. open-ended payment systems (fee-for-service);4. developments in technology;5. malpractice litigation;6. self-referral (many physicians own diagnostic equipment andlabs to which they refer their patients to enhance income);7. expenses related to containment policies (cost-containment systemsincrease both payer and provider overhead);8. and increasing physician supply.Price increases, however, are only part of the problem. Medicalexpenditure growth has two components: rising prices and increasedutilization. Both are extremely difficult to control. Equation (1) illustratesthe fundamental relationship that must be considered in all costcontainment planning:(1) Medical Expenditures = Price of Medical Services x Utilization of Medical Services354