The cost of health care administration: Lessons from the FAA as a public model

Medical Economics August 21, 2025
Richard Payerchin, Todd Shryock

‘Precedents thinking’ and what other businesses have to teach health care about cutting administrative burdens.

Federal Aviation Administration (FAA) grew out of a need to standardize rules for flying airplanes across the country. Today, competing airlines operate stay in business while operating under the same set of rules. It’s yet another example of how lessons from another sector could hold the key to alleviating administrative burdens in health care, said Kevin Schulman, MD, MBA, is an internal medicine physician and professor of medicine at Stanford University.

Medical Economics: What could the U.S. health care system learn from the FAA? Standardizing rules that allow competing businesses to operate efficiently

Kevin Schulman, MD, MBA: Another public model was the origin of the...

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