A Balance Sheet Healthcare Model to Lower Costs

Abstract

This paper develops a Balance Sheet Healthcare Model, by innovatively combining aspects of two separate disciplines, accounting and healthcare, as a way to lower healthcare costs. The trend of increasing annual prices for medical services, drugs, and insurance premiums plus medical plans with higher deductibles for their employees (PriceWaterhouseCoopers, 2019) are expected to continue. The Balance Sheet Healthcare Model presents a way of thinking about financial assets and liabilities superimposed on the human body, the influence of individual consumption choices, and predicts the resulting effect on health equity and healthcare costs.