Catastrophic care

I recently read the book Catastrophic Care by David Goldhill.

The book provides a great overview of the US healthcare industry with a specific focus on rising healthcare costs in the country which are already well above global averages. The book’s core argument is that while intermediaries like insurers, Medicare, and Medicaid should theoretically negotiate lower healthcare prices for patients than what patients who are at an informational disadvantage to healthcare providers could negotiate on their own, in practice these intermediaries are incentivized to increase their profits by covering more conditions and increasing premiums rather than controlling costs. The solution is to return to a structure where the patient is the payor for all but the truly catastrophic conditions that insurance was originally designed to cover.

If you want to read the full book including data and case studies of specific programs and treatments, you can buy it here.


Also published on Medium.