9 factors that drive healthcare costs

• Physician, facility, and drug costs are high.

• Americans use a higher proportion of expensive medicine.

• Care is fragmented and uncoordinated.

• Consumers do not weigh costs when making health care decisions.

• The traditional fee-for-service payment model promotes fragmentation and higher spending.

• Administrative expenses are high.

• Unhealthy lifestyle choices and behaviors add to health burdens.

• End-of-life care in the United States is expensive.

• Provider consolidation and market power.

Source: The Miller Center, University of Virginia, prepared for the State Health Care Cost Containment Commission, January 2014