New Study Indicates More Waste in Healthcare
April 11th, 2008A recent report by PricewaterhouseCoopers’ Health Research Institute estimates that the waste in our healthcare system has grown to an astonishing $1.2 trillion each year. As we look for ways to reign in rising healthcare costs eliminating this waste will go a long way in ensuring quality healthcare for families and seniors.
According to the report, The Price of Excess, the U.S. spends $2.2 trillion on healthcare. If $1.2 trillion is wasted, that is more than half of our money. This is simply unacceptable.
The report lists out several areas in which waste is prominent:
• $210 billion from practicing defensive medicine;
• $25 billion for preventable hospital readmissions;
• $17 billion in medical errors;
• $14 billion for unnecessary emergency room visits; and
• $81-$88 billion from failure to implement and ineffective use of information technology.
While some have questioned if these numbers are a bit inflated, there is no doubt that a great deal of waste in our healthcare system. Unfortunately, the federal government has been slow to respond with real reforms based on patient safety, patient quality, and patient choice. Rather one side has pushed for government-run healthcare, paid for by all taxpayers, while the other has focused on health savings account. These two approaches will not eliminate the waste, but only shift who pays.
The federal government needs to have a leading role if we are to reduce the cost of healthcare. Congress can encourage the development of integrated health information technology, Medicare and Medicaid can stop paying for healthcare acquired infections and medical errors, and provide funding for more community health centers to help the uninsured and underinsured.
However, each of us also has their own personal responsibility. This includes regular health check-ups, maintaining a proper diet and exercise, knowing and understanding your personal medical history, and taking prescribed medications.
Eliminating the waste in our healthcare system is a huge task, but it is one that we can accomplish. By changing the way we approach healthcare, we can lead longer, healthier lives.