Sunday, May 18, 2014

Medical Doctor Income Is Not The Cause Of Rising Healthcare Costs

This article contrasts the salaries of doctors with the compensation of executives who run hospitals and insurance companies.  The executives earn much more than physicians.  The article does extend its analysis to executives at corporations that provide drugs and devices to the healthcare industry.  Most doctors have been trained to serve their patients.  Business executives have been trained to grow profits, and the scale of their enterprise. They share in the growth of profits and scale.  This increases the non-labor cost of healthcare.  The prices for the use of devices and facilities has risen faster than physician income. 

One can cast this discussion in terms of the Piketty thesis.  Medical doctors are highly skilled employees who earn a decent living.  They do less well, however, than the owners of capital, which includes the executives who manage the healthcare industry as well as other shareholders. 

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