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Weekly Wisdom from Kauffman: What the ‘cost disease’ means for entrepreneurs

Christina Hernandez Sherwood, eMed Editor, MedCity News

It’s well known -- and deeply concerning -- that the cost of health care in the United States is exploding. A Kauffman Foundation-funded book, The Cost Disease: Why Computers Get Cheaper and Health Care Doesn't, explores the cause of this problem and provides an explanation. Once we understand the ‘cost disease,’ writes author William J. Baumol, effective responses become clear.

Baumol traces the increasing prices of health care and education in industrial nations, including the U.S., and examines the underlying causes, which deal with the nature of providing labor-intensive services. His analysis could prove helpful for life science and digital health entrepreneurs seeking to create medical interventions that at once improve care and reduce health care costs.

Weekly Wisdom from Kauffman is a regular feature on eMed highlighting insightful research from the Kauffman Foundation. Do you have a favorite Kauffman research insight that could help life science entrepreneurs? Send it to mailto:emededitor@kauffman.org. 

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