ANN ARBOR, Mich., Oct. 26 /PRNewswire/ -- The U.S. healthcare system wastes between $600 billion and $850 billion annually, according to a white paper published today by Thomson Reuters.
The report identifies the most significant drivers of wasteful spending -- including administrative inefficiency, unnecessary treatment, medical errors, and fraud -- and quantifies their cost. It is based on a review of published research and analyses of proprietary healthcare data.
"The bad news is that an estimated $700 billion is wasted annually. That's one-third of the nation's healthcare bill," said Robert Kelley, vice president of healthcare analytics at Thomson Reuters and author of the white paper. "The good news is that by attacking waste, healthcare costs can be reduced without adversely affecting the quality of care or access to care.
"That's the point of this report -- to identify areas in the healthcare system that can generate game-changing savings," Kelley said.
Here are some of the study's key findings:
- Unnecessary Care (40% of healthcare waste): Unwarranted treatment, such as the over-use of antibiotics and the use of diagnostic lab tests to protect against malpractice exposure, accounts for $250 billion to $325 billion in annual healthcare spending.
- Fraud (19% of healthcare waste): Healthcare fraud costs $125 billion to $175 billion each year, manifesting itself in everything from fraudulent Medicare claims to kickbacks for referrals for unnecessary services.
- Administrative Inefficiency (17% of healthcare waste): The large volume of redundant paperwork in the U.S. healthcare system accounts for $100 billion to $150 billion in spending annually.
- Healthcare Provider Errors (12% of healthcare waste): Medical mistakes account for $75 billion to $100 billion in unnecessary spending each year.
- Preventable Conditions (6% of healthcare waste): Approximately $25 billion to $50 billion is spent annually on hospitalizations to address conditions such as uncontrolled diabetes, which are much less costly to treat when individuals receive timely access to outpatient care.
- Lack of Care Coordination (6% of healthcare waste): Inefficient communication between providers, including lack of access to medical records when specialists intervene, leads to duplication of tests and inappropriate treatments that cost $25 billion to $50 billion annually.
About Thomson Reuters
Thomson Reuters is the world's leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial, legal, tax and accounting, healthcare and science and media markets, powered by the world's most trusted news organization. With headquarters in New York and major operations in London and Eagan, Minnesota, Thomson Reuters employs more than 50,000 people and operates in over 100 countries. Thomson Reuters shares are listed on the Toronto Stock Exchange (TSX: TRI) and New York Stock Exchange (NYSE: TRI). For more information, go to www.thomsonreuters.com
SOURCE Thomson Reuters
Related medicine news :1
. Micro-Waste Corporation Ordered to Pay Sanitecs Attorney Fees2
. Vestara and MedClean Technologies Announce Co-Marketing Partnership to Expand Innovative Solution for Pharmaceutical Waste Management3
. Nationwide Health Data Exchange Allows Health Provider Payers to Cooperate in Decreasing Waste and Helping Policyholder Costs4
. Bringing harmony to electronic waste disposal5
. Photos: Balance Nutrition and Taste, Reduce Food Waste!6
. American Red Cross Charged With Bio-Hazardous Waste Dumping7
. NTU and Sembcorp to jointly explore novel waste water treatment technology8
. Acoustiblok, Inc. Combines Sound Abatement and Insulation Materials at Broward County Waste to Energy Plant to Reduce Industrial Noise Pollution9
. Holder, Sebelius to Announce New Initiative to Fight Medicare Waste, Fraud and Abuse10
. Coalition Says On-Site Infectious Medical Waste Treatment Key To Disease Control and Hospital Sustainability During a Pandemic11
. American Association for Homecare Applauds Senate Subcommittee Efforts to Prevent Waste and Fraud in Medicare; Association Presents 13-Point Legislative Plan to Stop Waste and Fraud