Cost Of Healthcare Rising Due To Waste According To New Study
Over the past several years we have seen a steady rise in healthcare costs. In an article released Monday, the private health insurance company, Humana, informed it’s readers of a total of $265 billion wasted on healthcare each year in the U.S. The study revealed that at least one of every four dollars is being wasted annually. With health care costs higher than ever, what is the source of the wasted money being spent each year? With some even opting for a health care plan, are we too late to turn back? Today we will look at the findings of the article and help breakdown the numbers of health care waste.
We Are Wasting Money
Researchers at Humana recently completed a multiyear study published this month in the Journal of the American Medical Association. Through a thorough look at nearly 25% of the country’s total health care spending, they were able to pinpoint a number of total waste in spending. Waste in spending was attributed to failures in care delivery, care coordination, overtreatment/low-value care, and pricing failure. The way medical claims are processed has also increased costs as well as administration complexity. The study summed up that money is being misspent every year and different expectations of value have caused price increases.
Focusing On Care And Not Cost
The answer to high administration costs, at least for the company is switching to a new value core model. This approach focuses on a physician’s dedication to their patient’s health, and not about the number of services provided. This model reimburses providers when better health outcomes occur, due to a higher quality of service.
Through this model caregivers and primary care can meet in the middle and focus on patient health, not cost. As workers in the healthcare field, our job is to focus on patient care. By focusing on higher quality of health and not the cost we can help patients succeed in recovering without the stress of bills lingering in their minds. As a result, the improvement of healthcare is in our hands!
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