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http://www.reuters.com/article/pressRelease/idUS78128+26-Oct-2009+PRN20091026?sp=true
Waste in the U.S. Healthcare System Pegged at $700 Billion in Report From
Thomson Reuters
ANN ARBOR, Mich., Oct. 26 /PRNewswire/ -- The U.S. healthcare system wastes
between $600 billion and $850 billion annually, according to a white paper
published today by Thomson Reuters.
The report identifies the most significant drivers of wasteful spending --
including administrative inefficiency, unnecessary treatment, medical errors,
and fraud -- and quantifies their cost. It is based on a review of published
research and analyses of proprietary healthcare data.
"The bad news is that an estimated $700 billion is wasted annually. That's
one-third of the nation's healthcare bill," said Robert Kelley, vice president
of healthcare analytics at Thomson Reuters and author of the white paper. "The
good news is that by attacking waste, healthcare costs can be reduced without
adversely affecting the quality of care or access to care.
"That's the point of this report -- to identify areas in the healthcare system
that can generate game-changing savings," Kelley said.
Here are some of the study's key findings:
-- Unnecessary Care (40% of healthcare waste): Unwarranted treatment,
such as the over-use of antibiotics and the use of diagnostic lab tests to
protect against malpractice exposure, accounts for $250 billion to
$325 billion in annual healthcare spending.
-- Fraud (19% of healthcare waste): Healthcare fraud costs $125 billion
to $175 billion each year, manifesting itself in everything from fraudulent
Medicare claims to kickbacks for referrals for unnecessary services.
-- Administrative Inefficiency (17% of healthcare waste): The large
volume of redundant paperwork in the U.S. healthcare system accounts
for $100
billion to $150 billion in spending annually.
-- Healthcare Provider Errors (12% of healthcare waste): Medical mistakes
account for $75 billion to $100 billion in unnecessary spending each
year.
-- Preventable Conditions (6% of healthcare waste): Approximately $25
billion to $50 billion is spent annually on hospitalizations to
address conditions such as uncontrolled diabetes, which are much less costly
to treat when individuals receive timely access to outpatient care.
-- Lack of Care Coordination (6% of healthcare waste): Inefficient
communication between providers, including lack of access to medical
records when specialists intervene, leads to duplication of tests and
inappropriate treatments that cost $25 billion to $50 billion
annually.
About Thomson Reuters
Thomson Reuters is the world's leading source of intelligent information for
businesses and professionals. We combine industry expertise with innovative
technology to deliver critical information to leading decision makers in the
financial, legal, tax and accounting, healthcare and science and media
markets, powered by the world's most trusted news organization. With
headquarters in New York and major operations in London and Eagan, Minnesota,
Thomson Reuters employs more than 50,000 people and operates in over 100
countries. Thomson Reuters shares are listed on the Toronto Stock Exchange
(TSX: TRI) and New York Stock Exchange (NYSE: TRI). For more information, go
to www.thomsonreuters.com
SOURCE Thomson Reuters
David Wilkins of Thomson Reuters, +1-734-913-3397,
David.wilkins@thomsonreuters.com
Waste in the U.S. Healthcare System Pegged at $700 Billion in Report From
Thomson Reuters
ANN ARBOR, Mich., Oct. 26 /PRNewswire/ -- The U.S. healthcare system wastes
between $600 billion and $850 billion annually, according to a white paper
published today by Thomson Reuters.
The report identifies the most significant drivers of wasteful spending --
including administrative inefficiency, unnecessary treatment, medical errors,
and fraud -- and quantifies their cost. It is based on a review of published
research and analyses of proprietary healthcare data.
"The bad news is that an estimated $700 billion is wasted annually. That's
one-third of the nation's healthcare bill," said Robert Kelley, vice president
of healthcare analytics at Thomson Reuters and author of the white paper. "The
good news is that by attacking waste, healthcare costs can be reduced without
adversely affecting the quality of care or access to care.
"That's the point of this report -- to identify areas in the healthcare system
that can generate game-changing savings," Kelley said.
Here are some of the study's key findings:
-- Unnecessary Care (40% of healthcare waste): Unwarranted treatment,
such as the over-use of antibiotics and the use of diagnostic lab tests to
protect against malpractice exposure, accounts for $250 billion to
$325 billion in annual healthcare spending.
-- Fraud (19% of healthcare waste): Healthcare fraud costs $125 billion
to $175 billion each year, manifesting itself in everything from fraudulent
Medicare claims to kickbacks for referrals for unnecessary services.
-- Administrative Inefficiency (17% of healthcare waste): The large
volume of redundant paperwork in the U.S. healthcare system accounts
for $100
billion to $150 billion in spending annually.
-- Healthcare Provider Errors (12% of healthcare waste): Medical mistakes
account for $75 billion to $100 billion in unnecessary spending each
year.
-- Preventable Conditions (6% of healthcare waste): Approximately $25
billion to $50 billion is spent annually on hospitalizations to
address conditions such as uncontrolled diabetes, which are much less costly
to treat when individuals receive timely access to outpatient care.
-- Lack of Care Coordination (6% of healthcare waste): Inefficient
communication between providers, including lack of access to medical
records when specialists intervene, leads to duplication of tests and
inappropriate treatments that cost $25 billion to $50 billion
annually.
About Thomson Reuters
Thomson Reuters is the world's leading source of intelligent information for
businesses and professionals. We combine industry expertise with innovative
technology to deliver critical information to leading decision makers in the
financial, legal, tax and accounting, healthcare and science and media
markets, powered by the world's most trusted news organization. With
headquarters in New York and major operations in London and Eagan, Minnesota,
Thomson Reuters employs more than 50,000 people and operates in over 100
countries. Thomson Reuters shares are listed on the Toronto Stock Exchange
(TSX: TRI) and New York Stock Exchange (NYSE: TRI). For more information, go
to www.thomsonreuters.com
SOURCE Thomson Reuters
David Wilkins of Thomson Reuters, +1-734-913-3397,
David.wilkins@thomsonreuters.com
