Hospital Cost Control

A Bitter Pill to Swallow

Published in: Harvard Business Review, v. 63, no. 2, Mar.-Apr. 1985, 160-167

Posted on RAND.org on January 01, 1985

by Henry J. Aaron, William B. Schwartz

Read More

Access further information on this document at harvardbusinessonline.hbsp.harvard.edu

This article was published outside of RAND. The full text of the article can be found at the link above.

Americans delude themselves if they think that the rising tide of medical costs can be stemmed for long without sacrificing some beneficial care. Elimination of waste from the medical system can achieve large savings. But these savings cannot offset for more than a few years the cost-increasing effects of new medical technology and an aging population. Comparing the American experience with the rationing of health care in Britain, these authors conclude that though the differences are substantial between the two countries, the United States may well need to apply similar constraints, and that Americans will no longer be willing to support a system of unlimited medical care.

This report is part of the RAND Corporation external publication series. Many RAND studies are published in peer-reviewed scholarly journals, as chapters in commercial books, or as documents published by other organizations.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.