Search
 
Best Practices

4 Ways to Cut Spending on Inappropriate Healthcare

Unnecessary healthcare services cost the industry $750 billion annually. For employers looking to bring their healthcare spending into check, this is a good place to start.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Unnecessary health care services represent 27.5 percent of the exorbitant costs of healthcare—$750 billion is spent annually on unnecessary or inefficient care. For employers looking to bring their health care spending into check, bringing these numbers down is a good place to start.

A recent webinar presented by Catalyst for Payment Reform tackled the issue of inappropriate care and strategies major employers are successfully using to combat the issue—and save money.

“This is a problem that’s not going to go away on its own,” noted Catalyst’s Suzanne Delbanco. “There’s a lot we need to put into place in terms of structure, process and even the right incentives.”

Related: 20 conditions top U.S. health care spending

Inappropriate care covers a variety of services, from unnecessary tests and surgeries to over-prescribing antibiotics to painkillers. One of the main problems, however, is that there’s no definite line that separates “appropriate” from “inappropriate” care—there’s a grey area that might be deemed appropriate in one case but not another. “Studying appropriateness is challenging: it refers to any individual patient, not the population,” Bob Berenson of the Urban Institute told the webinar audience. “One needs a lot of clinical detail that isn’t available from administrative data such as claims.”

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

Recommended Stories

How Biden Could Help Save Retirement

Jane Wollman Rusoff |

Retirement scholar Teresa Ghilarducci explains how the new president and Congress can heal the damage that Covid-19 has caused in the retirement system.

U.S. Employers Rush to Fill Vaccine Void

Ryan Beene & Michael Hirtzer |

Businesses across the United States are investing in deep-freezers and planning an approach to offer Covid vaccinations to their workforce.

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.