Anthem Blue Cross Led the Way
July 19, 2015
Affordable Care Act Brings Scrutiny
July 19, 2015

Healthcare Delivery System Waste

Everyone involved in the healthcare delivery system knows that there is waste involved and that the waste is driving health care costs. But just exactly how much waste there is in our system may surprise you.
The report shows that unnecessary services are the biggest problem, accounting for $210 billion in annual waste. Combining that number with $130 billion in costs due to inefficiently delivered services should give providers and patients everywhere pause. Administrative waste is another big culprit, representing $190 billion. Other problem areas include care prices that are too high, fraud, and missed prevention opportunities.

The Institute members issuing the report are very clear in their assertion that something’s got to give, and their main idea how to fix the system is a very simple one—health care should be better organized and coordinated. “Left unchanged, health care will continue to underperform, cause unnecessary harm, and strain national, state, and family budgets,” the panel wrote. “The actions required to reverse this trend will be notable, substantial, sometimes disruptive — and absolutely necessary.”

Everyone involved in the healthcare delivery system knows that there is waste involved and that the waste is driving health care costs. But just exactly how much waste there is in our system may surprise you.
The report shows that unnecessary services are the biggest problem, accounting for $210 billion in annual waste. Combining that number with $130 billion in costs due to inefficiently delivered services should give providers and patients everywhere pause. Administrative waste is another big culprit, representing $190 billion. Other problem areas include care prices that are too high, fraud, and missed prevention opportunities.

The Institute members issuing the report are very clear in their assertion that something’s got to give, and their main idea how to fix the system is a very simple one—health care should be better organized and coordinated. “Left unchanged, health care will continue to underperform, cause unnecessary harm, and strain national, state, and family budgets,” the panel wrote. “The actions required to reverse this trend will be notable, substantial, sometimes disruptive — and absolutely necessary.”

Brian Schroeder
Brian Schroeder
Brian J Schroeder – Independent Broker - (925) 513-7778