Good post on the costs of the US healthcare system by Wintercow over at The Unbroken Window.

Some quotes:

"Follow the goods, not the money."

"How would you measure how costly the U.S. medical system is? Would you look at how many dollar bills are spent? Or would you examine what real resources are used up in order to deliver said outcomes? Good economics suggests the latter."

Or, more generally speaking:

How would you measure how costly X is? Would you look at how many dollar bills are spent? Or would you examine what real resources are used up in order to deliver said outcomes? Good economics suggests the latter.