The healthcare system is just as wasteful as US President Barack Obama says it is, and proposed reforms could be paid for by fixing some of the most obvious inefficiencies, preventing mistakes and fighting fraud, says a Thomson Reuters report released yesterday.
The US healthcare system wastes between US$505 billion and US$850 billion every year, the report from Robert Kelley, vice president of healthcare analytics at Thomson Reuters, found.
“America’s healthcare system is indeed hemorrhaging billions of dollars, and the opportunities to slow the fiscal bleeding are substantial,” the report reads.
“The bad news is that an estimated [US]$700 billion is wasted annually. That’s one-third of the nation’s healthcare bill,” Kelley said in a statement.
“The good news is that by attacking waste we can reduce healthcare costs without adversely affecting the quality of care or access to care.”
One example — a paper-based system that discourages sharing medical records — accounts for 6 percent of annual overspending.
“It is waste when caregivers duplicate tests because results recorded in a patient’s record with one provider are not available to another or when medical staff provides inappropriate treatment because relevant history of previous treatment cannot be accessed,” the report says.
Some other findings in the report from Thomson Reuters included:
• Unnecessary care, such as the overuse of antibiotics and lab tests to protect against malpractice exposure, makes up 37 percent of healthcare waste, or US$200 to US$300 a year.
• Fraud makes up 22 percent of healthcare waste, or up to US$200 billion a year in fraudulent Medicare claims, kickbacks for referrals for unnecessary services and other scams.
• Administrative inefficiency and redundant paperwork account for 18 percent of healthcare waste.
• Medical mistakes account for US$50 billion to US$100 billion in unnecessary spending each year, or 11 percent of the total.
• Preventable conditions such as uncontrolled diabetes cost US$30 billion to US$50 billion a year.
“The average U.S. hospital spends one-quarter of its budget on billing and administration, nearly twice the average in Canada,” the report says, citing dozens of other research papers.
“American physicians spend nearly eight hours per week on paperwork and employ 1.66 clerical workers per doctor, far more than in Canada,” it says, quoting a 2003 New England Journal of Medicine paper by Harvard University researcher Steffie Woolhandler.
Yet primary care doctors are lacking, forcing wasteful use of emergency rooms, for instance, the report says.
All this could help explain why Americans spend more per capita and the highest percentage of GDP on healthcare than any other OECD country, yet are an unhealthier population, with more diabetes, obesity and heart disease and higher rates of neonatal births than other developed nations.
Democratic Senator Charles Schumer said on Sunday that Senate Democratic leaders are close to securing enough votes to pass legislation to start reform of the country’s US$2.5 trillion healthcare system.
Republican US lawmakers on Friday criticized US President Joe Biden’s administration after sanctioned Chinese telecoms equipment giant Huawei unveiled a laptop this week powered by an Intel artificial intelligence (AI) chip. The US placed Huawei on a trade restriction list in 2019 for contravening Iran sanctions, part of a broader effort to hobble Beijing’s technological advances. Placement on the list means the company’s suppliers have to seek a special, difficult-to-obtain license before shipping to it. One such license, issued by then-US president Donald Trump’s administration, has allowed Intel to ship central processors to Huawei for use in laptops since 2020. China hardliners
A top Vietnamese property tycoon was on Thursday sentenced to death in one of the biggest corruption cases in history, with an estimated US$27 billion in damages. A panel of three hand-picked jurors and two judges rejected all defense arguments by Truong My Lan, chair of major developer Van Thinh Phat, who was found guilty of swindling cash from Saigon Commercial Bank (SCB) over a decade. “The defendant’s actions ... eroded people’s trust in the leadership of the [Communist] Party and state,” read the verdict at the trial in Ho Chi Minh City. After the five-week trial, 85 others were also sentenced on
Conjoined twins Lori and George Schappell, who pursued separate careers, interests and relationships during lives that defied medical expectations, died this month in Pennsylvania, funeral home officials said. They were 62. The twins, listed by Guinness World Records as the oldest living conjoined twins, died on April 7 at the Hospital of the University of Pennsylvania, obituaries posted by Leibensperger Funeral Homes of Hamburg said. The cause of death was not detailed. “When we were born, the doctors didn’t think we’d make 30, but we proved them wrong,” Lori said in an interview when they turned 50, the Philadelphia Inquirer reported. The
RAMPAGE: A Palestinian man was left dead after dozens of Israeli settlers searching for a missing 14-year-old boy stormed a village in the Israeli-occupied West Bank US President Joe Biden on Friday said he expected Iran to attack Israel “sooner, rather than later” and warned Tehran not to proceed. Asked by reporters about his message to Iran, Biden simply said: “Don’t,” underscoring Washington’s commitment to defend Israel. “We are devoted to the defense of Israel. We will support Israel. We will help defend Israel and Iran will not succeed,” he said. Biden said he would not divulge secure information, but said his expectation was that an attack could come “sooner, rather than later.” Israel braced on Friday for an attack by Iran or its proxies as warnings grew of