Welcome to the new section of our website which deals with the intersection between economics and medical issues.

At the practical level, it deals with resources useful in future medical issues dealing with the straightforward medical issues in injury cases calling for medications and associated periodic medical evaluations. At the other end of complexity, it deals with complex life care plan issues with the necessary medical evaluations, medical treatments, medications needed, palliative care such as physical and occupational therapies, special equipment needs including specialized transportation needs as well as attendant care needs. In all these cases, appropriately credentialed medical and life care plan expert opinions are needed. An economist is needed to determine the cost of these needs as well as projecting there costs over the period for which they are required. An economist also is needed to reduce these future amounts to their present money value taking into account the interest rates which can be obtained on risk-free investments.

These medical resources also deal with broader public policy issues on medical care which economists need to assess. These issues start with the fact that medical care now encompasses almost 20% of the American economy. In practical terms, the average American works most of the first day of each week to pay for the medical care they require. The amount required has taken a larger and larger share of the American paycheck. This contrasts remarkably with the experience in other developed economies which the percent of GNP devoted to medical care and the percent increase in the cost of medical care is lower than that in the U.S.

That is not to say that simplistic remedies such as to adopt their system of medical care in the U.S. Such simplistic remedies would amount to economic sophistry or jingoism. In Canada, for example, the percent of GNP devoted to medical care is lower and the percent increase in the cost of medical care is lower. It is simplistic to assume that a simple adoption of the Canadian model is appropriate. It is not. In America, we have our own set of institution and attitudes in which change must be made. We will give you links to articles which deal with some of those issues.

One beginning point is to look at research on areas of waste in the American medical system. One such research paper by Doyle, Graves & Gruber, "Uncovering Waste in U.S. Healthcare", deals with the discharge of persons to skilled nursing facilities where the longevity outcomes as well as the costs incurred are dismal.