Bureaucracy consumes one-quarter of US hospitals' budgets, twice as much as other nations
A study of hospital administrative costs in eight nations published today in the September issue of Health Affairs finds that hospital bureaucracy consumed 25.3 percent of hospital budgets in the US in 2011, far more than in other nations. The international team of researchers found administrative costs were lowest in Scotland and Canada, whose single-payer systems fund hospitals through global, lump-sum budgets, much as a fire department is funded in the US.
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