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Structural inefficiencies in the U.S. healthcare system

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The United States healthcare system is characterized by high expenditures, systemic inefficiencies, and persistent outcome gaps. This narrative review adopts a systems lens to analyze the structural features of this system, including overuse, underuse, misuse, administrative complexity, misaligned pricing policies, and high spending. We analyze the role of innovative health technologies in the system, their dual nature, and how they can enhance outcomes or exacerbate fragmentation depending on implementation. Synthesizing insights from health economics, we identify actionable approaches for reform, such as stakeholder-aligned payment models, contract mechanisms, and patientcentered adoption strategies. We discuss that successful technology integration demands more than innovation; it requires systems-level governance and aligned pricing policies based on value-based contract mechanisms. The paper concludes with a research agenda emphasizing the empirical and system-informed evaluation of digital health tools across diverse contexts to achieve equitable, efficient, and sustainable transformation.

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System-level perspective U.S. healthcare system Health technology Digital health Healthcare innovation Operations management Healthcare spending Value-based care Payment models Stakeholder engagement

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