U.S. Wastes $1.2 Trillion in Health-Care Spending Each Year: Report | 2008.04.14 |
As much as $1.2 trillion of the $2.2 trillion spent on health care each year in the United States is wasted on excess health spending and inefficiency, according to an analysis released Thursday by PricewaterhouseCooper's Health Research Institute. The biggest area of wasteful spending identified in the analysis is defensive medicine, such as redundant, inappropriate or unnecessary tests and procedures. That's followed by inefficient health-care administration and the cost of care spent on conditions such as obesity, which is considered preventable by lifestyle changes. The analysis authors classified health system inefficiencies into three categories: consumer behavior; operational inefficiencies; and clinical overuse, misuse or under-use. Behavioral issues such as patient non-adherence to medical advice and prescriptions, alcohol abuse, smoking and obesity fall into all three categories. The analysis, which included a review of more than 35 industry reports and interviews with health industry representatives, was included in a report presented Thursday at a meeting of health-industry leaders in Washington, D.C. |