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The United States has high healthcare spending on hospitals and professional services. According to the article, a third of all the healthcare spending is on

The United States has high healthcare spending on hospitals and professional services. According to the article, a third of all the healthcare spending is on the hospital system. Then around a quarter of the spending is used on professional services. This shows that in the United States that healthcare spending is mostly on the hospitals and medical services in offices. Labor costs are the most in the healthcare spending, which means that the labor compensation is around 50 percent of healthcare revenues. This overall healthcare spending needs to be reduced because the spending needs to go on other healthcare needs, not mostly on labor costs. In order to reduce the labor costs, there would need to be increase in the labor supply. This would affect the healthcare supply as well because the more healthcare professionals or staff will affect the whole healthcare system. The increase in labor supply would be hiring more healthcare professionals, doctors, or staff. The unnecessary use of medical services or healthcare procedures in another cause for the spending on hospitals and professional services. Cutting down on these certain costs could give more room for healthcare spending in other areas that may need it. If there are are less spending on unnecessary medical services and hospital costs, then the demand for those services will go down. This will then cause the healthcare demand and supply to change on what is in demand for medical services. Healthcare spending can be used for multiple factors if hospitals and professionals services are reduced to leave more room for spending within the healthcare system.

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