Simplifying Processes Could Save U.S. Health System $40B Annually
Streamlining administrative processes could reduce U.S. health care spending by about $40 billion annually, according to a new report by the Center for American Progress, The Hill's "Healthwatch" reports.
The report found that administrative costs amount to about $361 billion annually, or about 14% of all health care spending. It estimates that at least half of those costs are wasteful (Baker, "Healthwatch," The Hill, 6/11).
The current system's complicated record keeping, varied processes and incompatible information technology systems contribute to the waste, according to the report (Sanger-Katz, National Journal, 6/11).
The report recommends several ways to lower administrative costs, such as:
- Integrating administrative rules;
- Coordinating similar processes; and
- Creating a federal office to oversee such efforts ("Healthwatch," The Hill, 6/11).
The report states that a simpler system that better documents services could save money without compromising care (National Journal, 6/11).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.