According to a new analysis, waste in the U.S. healthcare system has hit $935 billion a year
and editorials outlining waste in the U.S. health system and potential solutions.
Researchers in JAMA — including Shrank and his colleague Teresa Rogstad from Humana and Dr. Natasha Parekh from the University of Pittsburgh School of Medicine – looked at “six wasteful domains” identified by the Institute of Medicine report authors. Those were: failure of care delivery, failure of care coordination, over-treatment or low-value care, pricing failure, fraud and abuse, and administrative complexity.
“Administrative complexity is the greatest source of waste in the United States today and can be a result of payers’ efforts to reduce waste by reducing over-treatment and low value care,” researchers write in JAMA about the problems with fee-for-service payments to doctors and other medical care providers.
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