A study done jointly by the University of Southern California and the Center for American Progress contends that health reform eventually will add four million jobs to the economy.
The study, titled “New Jobs Through Better Health Care,” further predicts that health reform will add 250,000 to 400,000 jobs this decade.
Where will the jobs come from? In summary, according to the study: Health reform will result in lower health costs and premiums for employers, meaning companies will have more cash to sink into their operations and for payrolls. The formula in the study says that 120,000 jobs are added for every 10% decrease in health costs.
Where will the savings come from? The study says: Reform will change the incentives in current payment systems, and thus encourage higher quality, lower cost care. Estimates show that large savings are possible in a number of areas. For instance:
- Reducing the number and cost of high-cost illnesses through better coordination of care — for instance, fewer people needing to be rehospitalized after an initial hospitalization.
- Lowering unit prices of healthcare services that are more expensive in the United States than in other developed countries — for example, operating rooms and scanners that are run at less than full capacity.
- Streamlining excessive administrative costs that neither improve quality nor patient satisfaction.
Go here to see the full study.