BAC Medical Marketing
  • Home
  • Who we are â–·
    • Mission statement
    • Meet the team
    • We attract new patients
    • More for less
  • What we do â–·
    • Services offered
    • IdentityFind
    • MEDShield
    • Project samples
  • How we work â–·
    • Workflow process
    • BACMM affiliate program
    • Clients
    • Glossary
  • Why we're different â–·
    • Search engine optimization
    • Case studies
    • Letter from the President
    • Spotlighted products
  • When we're needed â–·
    • Consultancy compensation
    • Marketing tips
    • BACMM Blog
    • FAQs
  • Contact â–·
    • News you can use
    • Testimonials
    • Online resources
    • Jobs at BACMM
Call Today: 800.240.9473

Healthcare's Six Money-Wasting Problems

9/23/2010

0 Comments

 
More than $1.2 trillion spent on healthcare each year is a waste of money. Members of the medical community identify the leading causes.

Down the drain: $1.2 trillion.

That's half of the $2.2 trillion the United States spends on healthcare each year, according to the most recent data from accounting firm PricewaterhouseCoopers' Health Research Institute.

What counts as waste? The report identified 16 different areas in which healthcare dollars are squandered. But in talking to doctors, nurses, hospital groups and patient advocacy groups, six areas totaling nearly $500 billion stood out as issues to be dealt with in the healthcare reform debate.

1. Too Many Tests

Doctors ordering tests or procedures not based on need but concern over liability or increasing their income is the biggest waste of health care dollars, costing the system at least $210 billion a year, according to the report. The problem is called "defensive medicine."

"Sometimes the motivation is to avoid malpractice suits, or to make more money because they are compensated more for doing more," said Dr. Arthur Garson, provost of the University of Virginia and former dean of its medical school. "Many are also convinced that doing more tests is the right thing to do."

"But any money that is spent on a patient that doesn't improve the outcome is a waste," said Garson.

Some conservatives have suggested that capping malpractice awards would help solve the problem.

President Obama doesn't agree; instead, his reform proposal encourages doctors to practice "evidence-based" guidelines as a way to scale back on unnecessary tests.

2. Those Annoying Claim Forms

Inefficient claims processing is the second-biggest area of wasteful expenditure, costing as much as $210 billion annually, the PricewaterhouseCoopers report said.

"We spend a lot of time and money trying to get paid by insurers," said Dr. Terry McGenney, a Kansas City, Mo.-based family physician.

"Every insurance company has its own forms," McGenney said. "Some practices spend 40% of their revenue filling out paperwork that has nothing to do with patient care. So much of this could be automated."

Dr. Jason Dees, a family doctor in a private practice based in New Albany, Miss., said his office often resubmits claims that have been "magically denied."

"That adds to our administrative fees, extends the payment cycle and hurts our cash flow," he said.

Dees also spends a lot of time getting "pre-certification" from insurers to approve higher-priced procedures such as MRIs. "We're already operating on paper-thin margins and this takes times away from our patients," he said.

Susan Pisano, spokeswoman for America's Health Insurance Plans, said "hundreds of billions" of dollars can be saved by standardizing procedures and using technology -- something the White House has mentioned as a key to health care reform.

"For that to happen, we need the technology," she said. "Doctors and hospitals must adopt the technology, and we have to develop rules for exchanging of information between doctors, hospitals and health plans."

Pisano said the industry is launching a pilot program later this year that will allow physicians to communicate with all health plans using a standardized process.

3. Using the ER as a Clinic

More insured and uninsured consumers are getting their primary care in emergency rooms, wasting $14 billion every year in health care spending.

"This is an inappropriate use of the ER," said Dee Swanson, president of the American Academy of Nurse Practitioners. "You don't go to the ER for strep throat."

Since emergency rooms are legally obligated to treat all patients, Swanson said providers ultimately find ways to pass on the cost for treating the uninsured to other patients, such as to those who pay out-of-pocket for their medical care.

Dees also took issue with consumers who don't get primary care for their diabetes or blood pressure on a timely basis, hence finding themselves in the ER.

"Going to the doctor for strep throat would cost $65-$70. In the ER, it's $600 to $800," he said.

The $787 billion stimulus bill signed passed by President Obama earlier this year includes allocates $1 billion for a wellness and prevention fund, including $300 million for immunizations and $650 million for prevention programs to combat the rapid growth in chronic diseases such as obesity and diabetes.

4. Medical "Oops"

Medical errors are costing the industry $17 billion a year in wasted expenses, something that makes patient advocacy groups irate.

"Do we have a good health IT system in place to prevent this?" asked Kim Bailey, senior health policy analyst with consumer advocacy group Families USA.

Bailey suggested that processes such as computerized order entry for drugs and use of electronic health records (EHR) could help ensure that patients get the correct dosage of medications in hospitals.

The stimulus bill calls for the government to take a leading role in developing standards by 2010 to facilitate the adoption of health information exchanges across the system, including patient electronic health records by 2014.

Obama has repeatedly said that the use of technology in the health sector will help boost savings, enhance the coordination of care and reduce medical errors and unnecessary procedures.

5. Going Back to the Hospital

Bailey suggested that processes such as computerized order entry for drugs and use of electronic health records (EHR) could help ensure that patients get the correct dosage of medications in hospitals. Discharging patients too soon is a "huge waste of money," said Swanson.

"This happens a lot with elderly patients who are discharged prematurely because of insurance, bed unavailability or ageism," she said.

Many times, patients also don't follow instructions for care after discharge. "So complications arise and they are readmitted in a week," Swanson said.

PricewaterhouseCoopers estimates the cost of preventable hospital readmissions at $25 billion annually.

Among the reform plans, one proposal being considered is for Medicare to potentially penalize hospitals who readmit patients within 30 days of discharge.

6. You Forgot to Wash Your Hands!

Those ubiquitous dispensers of hand sanitizer are in hospitals for a reason: PricewaterhouseCoopers estimates that about $3 billion is wasted every year as a result of infections acquired during hospital stays.

"The general belief is that hospitals are getting much better in managing this than they have in the past," said Richard Clarke, CEO of Healthcare Financial Management Association, whose members include hospitals and managed care organizations.

Something as simple as hand-washing often can reduce the problem.

"Sometimes doctors are the most difficult people to convince to do this," said Clarke. "The challenge here is that patients sometimes come in with infections which then spread in the hospital."

The stimulus bill signed by Obama earlier this year includes $50 million for reducing healthcare-associated infections.

Other areas of waste identified in the PricewaterhouseCoopers report included up to $493 billion related to risky behavior such as smoking, obesity and alcohol abuse, $21 billion in staffing turnover, $4 billion in prescriptions written on paper, and $1 billion in the over-prescribing of antibiotics. 
0 Comments



Leave a Reply.

    Author

    Bruce A. Cadkin, MBA President                          BAC Medical Marketing

    Archives

    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012
    May 2012
    April 2012
    March 2012
    February 2012
    January 2012
    December 2011
    November 2011
    October 2011
    September 2011
    August 2011
    July 2011
    June 2011
    May 2011
    April 2011
    March 2011
    February 2011
    January 2011
    December 2010
    November 2010
    October 2010
    September 2010
    August 2010
    July 2010
    June 2010
    May 2010
    April 2010
    March 2010
    February 2010
    January 2010
    December 2009
    November 2009
    October 2009
    September 2009
    August 2009
    July 2009
    June 2009
    May 2009

    Categories

    All
    Advertising
    Affiliate Marketing
    Affiliate Program
    Anna Deavere Smith
    Avoiding Malpractice Suits
    Best Practices
    Blogs
    Branding
    Cash Only Medical Practice
    Concierge Medical Practice
    Crisalix Estetix
    Customer Service
    Defensive Medicine
    Dental Practice Marketing
    Developing Physician Leaders
    Electronic Medical Records
    Emwave Products
    Expert Panels
    Facts And Figures
    Gene Smart Wellness
    Going Dutch
    Gum Disease
    Healthcare Reform
    Heartmath
    Holiday Poems
    Ingenio Expert Advice
    Internet Marketing
    In The News
    Let Me Down Easy
    Liveperson Expert Advice
    Managing By The Numbers
    Marketing Momentum
    Marketing Strategies
    Martin Luther King
    Medical Marketing
    Medical Tourism
    Meta Tags
    Mobile Marketing
    Money Driven Medicine
    Most Influential Physicians
    Omega 3 Index
    Online Reviews
    Patient Advocate
    Patrick Soon-Shiong
    Physicians At Funerals
    Practice Advertising
    Prayer Over Treatment
    Pro Football Head Trauma
    Psychographics
    Public Relations
    Referral Marketing
    Search Engine Optimization
    Social Media Marketing
    Solution To Medicare
    Staff Training Programs
    Steve Jobs
    The Art Of Apology
    Top Medical
    Web Site Design
    Web Site Marketing

    Bookmark and Share

    RSS Feed

    Picture

    I'm an expert on Maven!

    Consult with me on Maven



    Zintro Expert
    zintro.com/expert/Marketing-Maven

    Ingenio Expert

    Picture
    Liveperson Expert

    Reuters Insight Expert

    Which of the following changes in your practice most accurately reflect your goal? (Check all that apply) I would like to...
     
    pollcode.com free polls
    YouTube
    Twitter
    Code Of Ethics
    Medical Blog Award
    Picture
    Picture
    Picture
    Picture
    Picture
    Picture
    Picture
    Picture
    Picture
    Dosie Award
    Weblog Award
    AlleyDog Award
    Best Blog Contest Award
    Blogtrepreneur Award
    Top 100 Blog Award
    Blogger's Choice Award
    Blogger's Choice Award
    Blog Advertising - Advertise on blogs with SponsoredReviews.com
Privacy Policy & Cookies Policy -- Terms & Conditions of Use -- Site Map 
                
      BAC Medical Marketing, BACMM and BAC / BACMM logos are trademarks of BAC Medical Marketing.


           © Copyright 2005 - 2019 BAC Medical Marketing. All rights reserved.


Picture

Protected by Copyscape Duplicate Content Detector
Website designed by Black Mamba