14 Feb 6 Categories of Waste in Health Care
Health care spending in America is rapidly growing. In 2009 alone, that waste as a whole totaled over $750 billion dollars, according to The Institute of Medicine. That obscene number has only increased in the years since. While that number may seem extremely high, when you factor in poor coordination between doctors, unneeded services, and additional appointments, it is easy to see how that money can add up.
To keep your hospital or healthcare clinic running as efficiently and effectively as possible and help your profit margins stay high, we have compiled a list of the 6 top categories of waste in health care. Take a look at them below:
Failures of care coordination
This includes poor planning on a doctor’s or physician’s part, where planning is not followed through, or where care has been split up. Problems can include but are not limited to undue hospital stays, extra time in the hospital, and highly avoidable complications.
Pricing waste comes from the cost of a test or scan. An example of this pricing failure is shown by Berwick and Hackbarth, “Magnetic resonance imaging and computed tomography scans are several times more expensive in the United States than they are in other countries,” due to the lack of competitors on the market.
Overtreatment can also be classified as defensive medicine. This form of practice includes requesting tests that are unnecessary or already completed. Overtreatment also often occurs when doctors try to treat the “early stages” of a medical condition while that illness may have never been a problem in the first place.
Fraud and Abuse
Fraud and abuse are exactly what you think they are. It is anything shady that goes on inside the administration or building. Aside from false bills and dishonest scams, it includes the cost of additional inspections that aim at catching these problems within a company.
Failures of care delivery
This includes effective preventive care, lack of patient safety practices and the general lack of using the safest practices. Problems with patients range from the minor, such as hypoglycemia or sickness, to the extreme, like kidney failure. These incidents lead to patient injuries, poor surgical outcomes and all around higher costs.
This category stems directly from the waste required by insurance agencies or the government due to bureaucratic procedures. This waste most commonly occurs in the billing and coding section of the medical teams. Administrative costs can be one of the largest burdens on a small office or in a large hospital.
Sunlit Cove Healthcare Consultants
We provide management and consulting services to help healthcare businesses run efficiently. Navigating the dynamic and complex revenue cycle management is a challenge for many health plans, health care vendors, and providers. Our consulting services are available to assist with your day-to-day operations and provide expertise in growth and change management. We manage all aspects of your enterprise from the development of the revenue cycle management process to the completion of your business cycle.
Related: Revenue Cycle Interim Management
2018 Trends in Revenue Cycle Management
With the new year quickly approaching, healthcare teams are in a unique situation when it comes to setting goals for 2018 and defining 2018 trends in revenue cycle management. Heal...
5 tips for healthcare administration on creating a healthy, efficient, and positive healthcare work environment
The American College of Physician Executives has reported that more than 5 percent of hospital CEOs are now physicians. That number is growing every year because of the new wave of...
Going Paperless in The Healthcare Workforce
Business Week predicted in 1975 that business offices would soon be going paperless. Due to the new usage of computer records, businesses were expected to completely stop using pap...
6 Categories of Waste in Health Care
Health care spending in America is rapidly growing. In 2009 alone, that waste as a whole totaled over $750 billion dollars, according to The Institute of Medicine. That obscene num...
Digital Pill and Its Possible Future Impact
Late 2017, the Food and Drug Administration approved the first digital pill. What is a digital pill? It is a capsule with a sensor that tracks if you have taken your prescribed med...