Study: Physician Fees are Major Driver in Healthcare Costs

A recent study published in Health Affairs has found that higher fees — rather than factors like higher practice costs, volume of services or tuition expenses — are the main drivers of high healthcare spending in the United States.

The study compared physicians' fees paid by public and private payors for primary care office visits and hip replacements in Australia, Canada, France, Germany, the United Kingdom and the United States.

The study found public and private payors paid somewhat higher fees to American primary care physicians for office visits — 27 percent more for public payors and 70 percent more for private — compared to payors in foreign countries.

U.S. payors also paid higher fees to orthopedic physicians for hip replacements compared to their global counterparts, with fees as much as 70 percent more for public payors and 120 percent more for private.

The study also found U.S. primary care and orthopedic physicians earned higher incomes ($186,582 and $442,450, respectively) than their foreign counterparts.

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