Read the article https://www.newyorker.com/magazine/2009/06/01/the-cost-conundrum

• Which explanation for the high cost of health careinMcAllen, Texas (compared to other cities in the U.S)did Dr.Gawandefound most convincing? Do you agree with him? Are there are other hypotheses that you find convincing? How do you think the health care system should address these high costs?

Possible hypotheses:

Aging population

People demand more health care as they age

Richer population

Rising incomes lead to more health care consumption

More insurance coverage

More insurancereduces out-of-pocket prices to patients of obtaining medical care

Increasing quality of medical care

each dollar spent on health care generates a higher marginal health benefit, so demand for health care increases

Increased resource costs

Less competitive markets

Hospital mergers may have made the market more monopolistic

Expensive new technology

if modern medical care routinely incorporates new, expensive technologies like MRI machines, the price of treating many ailments will rise