Navigation Links
Waste in the U.S. Healthcare System Pegged at $700 Billion in Report From Thomson Reuters
Date:10/26/2009

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


'/>"/>
SOURCE Thomson Reuters
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. Micro-Waste Corporation Ordered to Pay Sanitecs Attorney Fees
2. Vestara and MedClean Technologies Announce Co-Marketing Partnership to Expand Innovative Solution for Pharmaceutical Waste Management
3. Nationwide Health Data Exchange Allows Health Provider Payers to Cooperate in Decreasing Waste and Helping Policyholder Costs
4. Bringing harmony to electronic waste disposal
5. Photos: Balance Nutrition and Taste, Reduce Food Waste!
6. American Red Cross Charged With Bio-Hazardous Waste Dumping
7. NTU and Sembcorp to jointly explore novel waste water treatment technology
8. Acoustiblok, Inc. Combines Sound Abatement and Insulation Materials at Broward County Waste to Energy Plant to Reduce Industrial Noise Pollution
9. Holder, Sebelius to Announce New Initiative to Fight Medicare Waste, Fraud and Abuse
10. Coalition Says On-Site Infectious Medical Waste Treatment Key To Disease Control and Hospital Sustainability During a Pandemic
11. 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
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:10/13/2017)... ... 2017 , ... Yisrayl Hawkins, Pastor and Overseer at The House of Yahweh, ... and least understood books in the Holy Scriptures, Revelation. The Book of Revelation paints ... for centuries. Many have tossed it off as mere rubbish, but Yisrayl Hawkins says ...
(Date:10/13/2017)... (PRWEB) , ... October 13, 2017 , ... ... DevOps and Agile Software Development, has been awarded a contract by the Center ... Purchase Agreement (BPA) aims to accelerate the enterprise use of Agile methodologies in ...
(Date:10/13/2017)... ... 2017 , ... “America On The Brink”: the Christian history of the United ... the creation of published author, William Nowers. Captain Nowers and his wife, Millie, ... spent thirty years in the Navy. Following his career as a naval aviator ...
(Date:10/12/2017)... Francisco, CA (PRWEB) , ... October 12, 2017 ... ... Dr. Cheng, are now treating sleep apnea using cutting-edge Oventus O2Vent ... apnea, a serious sleep disorder characterized by frequent cessation in breathing. Oral appliances ...
(Date:10/12/2017)... ... October 12, 2017 , ... The company has developed ... consumer and regulatory authorities worldwide. From Children’s to Adults 50+, every formula has ... highest standard. , These products are also: Gluten Free, Non-GMO, Vegan, Soy ...
Breaking Medicine News(10 mins):
(Date:9/18/2017)... KALAMAZOO, Mich. , Sept. 18, 2017 ... , and OptiMed Specialty Pharmacy of Kalamazoo, ... offer a strategic hub service that expedites and streamlines ... personal spirometer, Spiro PD 2.0, and wellness management services.  ... is a medical device used to measure lung function ...
(Date:9/13/2017)... ATLANTA , Sept. 13, 2017   OrthoAtlanta ... to the Atlanta Football Host Committee (AFHC) for the 2018 ... Monday, Jan. 8, 2018, at Mercedes-Benz Stadium in ... part of the AFHC "I,m In" campaign, participating in many ... ...
(Date:9/12/2017)... 12, 2017  Consumer reviews on the independent review site ... number one company for hearing aids, ranking it higher than ... ... by Consumers For Hearing Aids ... is an online store that provides high performance, state-of-the-art, German-engineered hearing ...
Breaking Medicine Technology: