LIFE Magazine August 1980 – Healthcare Costs Were 9% of GDP and Rising

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Yesterday, I shared some old auto industry images and clips from the August 1980 LIFE magazine. More striking to me was an ad from Aetna health insurance, pictured below, the full ad and then some detailed clips below (click any for larger view):

Surprise, surprise, in 1980, people thought healthcare costs were too high. The ad expresses shock that the U.S. was spending 9% of GDP on healthcare and we need to find ways to reduce that. Well, here we are in 2009 and healthcare is 15.2% of our GDP. Ah, so past solutions didn't work… or did we save “Trillions” because we'd be at 18% of GDP without the previous fixes? Ah, things like that can never be proven…

 

So healthcare costs had doubled in five years, and radical changes were proposed (sound familiar?).

This last part sounds familiar — coordinating care, preventing duplication… all sounds fine in theory, I suppose. Can anyone shed some history on the HSAs and why they worked or didn't work?

This last clip talks about over-investment in equipment and facilities… idle and open beds isn't really the problem today, is it?

I'm certainly not the expert on big-picture issues like this… but sharing the old clips to hopefully get some input from those who know more about the history and issues on this level.

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Mark Graban is an internationally-recognized consultant, author, and professional speaker who has worked in healthcare, manufacturing, and startups. His latest book is Measures of Success: React Less, Lead Better, Improve More. He is author of the Shingo Award-winning books Lean Hospitals and Healthcare Kaizen, as well as The Executive Guide to Healthcare Kaizen. He also published the anthology Practicing Lean that benefits the Louise H. Batz Patient Safety Foundation, where Mark is a board member. Mark is also a Senior Advisor to the technology company KaiNexus.

1 Comment
  1. John Hunter says

    The long term, macro economic failure of health care in the USA is extremely important. Dr. Deming say the problem and listed excessive heath care costs one of his 7 deadly diseases of western management in the 1980’s and it just gets worse every year (I believe we are at 17.6% of GDP in 2009).

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