1/3 of healthcare spending is wasted
For any strained budget, but especially a nation's, step one should be a simple choice: Eliminate waste. I know; easier said than done.
Still, I hope that doesn't stop the newest slate of officials from trying it with healthcare. Experts estimate wasted spending on medical care at $765 billion annually, or 30 percent of all U.S. healthcare spending, according to the New York Times.
The Institute of Medicine convened a panel of industry experts to study, well, studies.Their findings and report "The Healthcare Imperative" were released earlier this year and include:
* Unnecessary services cost $210 billion annually.
* Lost prevention opportunities: $55 billion
* Excessive pricing: $105 billion
* Fraud: $75 billion
* Preventable mistakes: $130 billion
* Insurance/administrative costs: $190 billion
* Rise in average U.S. salaries during last decade: 38 percent. Health care premiums: 131 percent.
About two-thirds of patients don't know what procedures cost until the bill arrives. Half did not receive information about alternatives, pros, and cons before scheduling procedures. You don't need a medical degree to know germs can make things worse, yet another study showed half of medical professionals still don't wash their hands immediately before medical procedures.
How can we fix it, and reduce at least $400 billion in annual waste? Start with better coordination, says the Institute. One study found that a typical Medicare patient with Type 2 diabetes saw five different doctors in one year (according to AARP, most Medicare patients see seven per year). That's five times getting familiar with a patient's individual condition and needs before assessing the next step, sometimes resulting in conflicting prescriptions or recommendations.
Another study found that 75 percent of hospital patients could not identify the physician in charge of their care. Twenty percent of patients reported their records did not reach a medical office in time for the appointment, which necessitated further appointments and tests to get information required for care decisions.
It's like a traffic jam on the medical highway; collisions seem inevitable.
The IOM panel didn't have a magic answer. What they did strongly suggest is that everyone involved - patients, healthcare providers, hospitals, insurers, and government - must work together to better coordinate ways to get full and usable information to doctors and patients in a timely manner. Attention, communication, and reliability are hallmarks for any cost-saving effort.
For the full report see IOM.edu.
Sholeh Patrick is a columnist for the Hagadone News Network. Contact her at sholehjo@hotmail.com.