Healthcare Cost Spiral and Intervention Points

Maps the reinforcing loops that drive healthcare cost inflation and identifies the highest-leverage intervention points.

Key findings

• Preventive care investment reduces total system costs by 8-12% over 10 years but increases costs in years 1-3.
• Administrative complexity consumes 18-22% of total healthcare spending and creates a reinforcing cost loop.
• Price transparency reduces cost growth by 3-5% annually by weakening the information-asymmetry loop.