The doctor in the video changed his practice due, in part, to the high administrative costs associated with filing all of the insurance paperwork. The dollar spent on healthcare in the united states that go toward administrative costs is 10%
Generally, Administrative costs are costs incurred by a business that are not directly linked to a certain core activity, such as manufacturing, production, or sales.
These costs may include rent, utilities, and insurance. As a contrast to the expenditures that are exclusive to particular departments or business units, these overhead costs are incurred by the company as a whole.
The medical practitioner in the video decided to alter his business in part because of the hefty administrative expenses connected with submitting all of the necessary insurance paperwork. 10% of every dollar that is spent on medical treatment in the United States goes toward covering administrative expenses.
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