Thanks to @ABIMFoundation for posting the video of my recent lecture on the @LAGeneralMed Policy to Override Policies. For those of you who know my lectures, this one is among the most entertaining. And it's only 10 min. Check it out & implement policy!
https://t.co/1pRRahGCwG
What’s infuriating about Professor Markovitz’s comments is the arrogance of pretending to understand healthcare delivery without ever having set foot in the trenches. Yes, we need more primary care physicians and nurses. That’s true. But the idea that costs are driven by highly skilled specialists is a fundamental distortion. The real reason we don’t have enough frontline providers is because vast resources are siphoned into layers of bureaucracy and administration that contribute nothing to patient care. The U.S. healthcare system employs more middle-class workers than any other sector, and far too many of them have nothing to do with healing patients—they’re pushing paper, managing billing complexity, and enforcing rules written by people just like him. If we want more access, more GPs, and more nurses, the solution isn’t to vilify specialists or cap skills. It’s to cut the bloat, eliminate useless administrative overhead, and redirect those dollars into actual care. That’s the conversation worth having.
We have the biggest gap ever between Home Prices and Mortgage Rates in 2025.
Prices are 90% above the 130-year average.
Meanwhile, Mortgage Rates are right around the long-term average (6.7%).
The resulting gap makes one thing clear: home prices are too high and need to come down.
Everyone talks about physician compensation.
Almost no one talks about overhead.
We debate how much CMS pays.
Why procedural specialties are paid more.
How physicians are reimbursed.
But that misses the real driver of dysfunction:
The single most expensive, least addressed force in U.S. healthcare is overhead.
Since 2000, the cost to run a medical practice has exploded—not because of waste, but because of structural demands:
•Labor inflation: Support staff wages up 20–30%
•IT requirements: EHR systems cost $100K+ to implement, plus ongoing fees
•Administrative burden: Prior auths, audits, quality metrics, and regulatory reporting—all requiring more staff and more unpaid physician hours
Today, 60–70% of practice revenue goes to overhead.
And that’s just at the practice level.
At the national level?
Administrative costs now exceed $1.4 trillion—about 25% of all U.S. healthcare spending.
Let that sink in.
Compare that to peer nations:
•Germany: 5%
•France: 6.5%
•Switzerland: 6.2%
•Canada: 3.8%
•U.K.: 3.5%
When we spend 3-5x more on bureaucracy than comparable countries, it’s no wonder we’re struggling.
And yet, the federal government continues to pour tax dollars and subsidies into hospital systems—without addressing the underlying cost drivers.
Now combine that with revenue trends:
•Medical Economic Index (MEI): +76%
•General Inflation (CPI): +70%
•Practice Overhead: +100% or more
•Medicare Conversion Factor: –5.5% (nominal)
•Inflation-adjusted CMS payments: ~26% decline
Rising costs. Flat and falling revenue.
This is the math problem that’s breaking medicine:
•Independent practices are disappearing
•Physician burnout is soaring
•Access in underserved communities is collapsing
This is what I mean when I say Medicare, Medicaid and healthcare need structural reform.
In 2023, the U.S. spent approximately $1.35 trillion on healthcare administration. That’s more than we spent on:
•Physician salaries (~$350B)
•Nursing salaries (~$335B)
•Retail prescription drugs (~$450B)
•Imaging, lab tests, EHRs, and outpatient procedures combined
•Even capital investment in hospitals and equipment
All the while, clinicians are being told to “do more with less.”
Every cost-saving initiative aimed at doctors adds layers of compliance and complexity which only fuels the unchecked growth of bureaucracy.
Here are 10 things that expert clinicians do everyday, often without realizing it🩺
(and how we can all start to implement these in our own practice)
A 🧵
#foamed#MedTwitter
@elonmusk If there was a lot less bureaucracy, red tape, cost of compliance, and regulations in the healthcare industry, we could probably get our money's worth a lot better.