How Healthcare Costs are Calculated: Basic Equation

Описание: Healthcare Costs--at a basic level--are calculated with a very simple formula:

Price Per Unit X The Number of Units = Total Healthcare Costs

For Example:

Price per MRI = $1,000
Number of MRIs = 50
Total Healthcare Costs for MRIs = $50,000

This formula is very straightforward, but it is helpful in preventing distraction from the "so-called complexity" of healthcare.

If healthcare costs are to be lowered, then the price per unit needs to go down or the number of units needs to go down... or Both.

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