Why does American health care cost so much?

Question: 

Why does American health care cost so much?  

Answer:  

Put simply, American health care costs so much because it is poor quality care and it is inefficiently administered.  Poor quality care comes in three general categories:  a) delivering clinically inappropriate care; b) preventable injury to patients while hospitalized; and c) failing to deliver known clinically effective care.  Taken together, these various kinds of poor quality care cost more than $700 billion per year.  American health care financing, largely delivered through private health insurers, is inefficiently administered relative to other first world countries.  Excess administrative costs in the US health care system are approximately $400 billion per year.  In summary, with health system reform that improves quality and efficiency, Americans could save $1 trillion per year.