Examples Of Administrative Waste In Healthcare

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Administrative Waste in U.S. Healthcare Regardless of technological advancement, life-saving skills and abilities and first-world resources, the outlandish cost of healthcare in the United States far surpasses any other country in the world. From price gouging, to double billing, to overbilling, to inefficient and expensive operations, the United States wastes $750 billion every year through our healthcare system. According to the Institute of Medicine (IOM), $200 billion of that astronomical number is due to nothing more than administrative waste. It is estimated that 15 cents of every dollar spent on healthcare is wasted due to inefficient administrative practices. Even though the majority of the negative focus largely surrounds the shortcomings of the Affordable Care Act (perceived or otherwise) many people are looking right over the top of this monstrosity of an issue. Trailing only unnecessary services and procedures, administrative waste trumps most other wasteful spending categories in the United States healthcare system, throwing away a huge percent of money that could be much better utilized. Take a second to contemplate just how much $200 billion actually is. What could we do with this if it we could channel it to be used for a greater cause? Think about eradicating poverty in our country or providing all low-income high-school graduates the opportunity to go to college. For $200 billion, we could literally stuff our low-income schools with the technology they need to keep up with the speedy technical evolution we are wrapped up in. Instead, there is $200 billion going down the drain on nothing more than administrative waste. The healthcare industry, as a whole, has made great strides towards improving access to he... ... middle of paper ... ... back on staffing needs and burdensome tasks, and it would surely increase customer satisfaction. The benefits can be two fold, because online operations would also tie into doing away with even more unnecessary paperwork. Minimizing or completely ridding the United States healthcare system of the administrative waste is just the tip of the iceberg when it comes to waste in healthcare spending. The good news is that this is a problem that more and more people are becoming aware of, so forward-thinking practitioners and health advocates are already proposing solutions. Once the changes begin to gain some traction and savings start to show, we will likely see greater patient satisfaction and lower insurance premiums, which will create a trickle-down effect benefiting anyone who does business in the healthcare industry, from the patient to the insurance companies.
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