A study by National Center for Policy Analysis (NCPA) suggests that by the middle of the century, healthcare will consume a whopping 33% of the total national income. This amount will gobble up entire state/local budgets as well as the federal budget. Unlike other developing countries, the US government exercises minimal restraint on healthcare spending. Also, the government is focusing its attention on covering more and more people rather than just the needy like in other countries. With the population of the aged rising rapidly, the healthcare costs of the state are bound to rise upwards.

In the direction of reducing healthcare costs, hospitals are now being pushed by the state to reduce their costs.

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