Advice and Information for Finance Professionals
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Finance Topics & Trends
December 6, 2019
Time to Eliminate Waste in Healthcare
Did you know the U.S. spends twice as much on healthcare as other high-income countries?
It’s no secret that healthcare costs are spiraling out of control in the United States. Nearly every night on the news, there’s a segment showing how everyday Americans are struggling to bear the costs of medical emergencies. The ever-increasing cost of healthcare is the reason why two-thirds of all bankruptcies cite medical issues as a major contributor.
Given how much the healthcare system has ballooned, surely there are areas for improvement?
A 2019 JAMA study found that waste in the healthcare system accounts for approximately 25% of total health care spending—an astronomical amount of waste that ranges from $760 billion to $935 billion. It’s no wonder that the amount spent in the U.S. on healthcare is quickly approaching 18% of gross domestic product (GDP). The study identified the two most wasteful components of the healthcare system:
- Administrative costs—they account for over $266 billion in waste a year. They are defined as time and resources devoted to billing and reporting to insurers and public programs.
- Prices—they account for somewhere between $231 billion to $241 billion in waste a year. This is partially attributed to low competition in healthcare markets and the high price tag of brand name drugs.
While the study identified a multitude of challenges facing the healthcare industry, it did identify a potential solution: value-based care. It can act as a streamlining force and help eliminate waste. While it alone won’t be able to alleviate all the waste plaguing the industry, it’s a good first step in meaningful change.
Technology and value-based care
Join us for a HIMSS and Oracle webcast that will explore how the shift to value-based care will impact healthcare organizations. Providers need to manage unnecessary costs by improving workflows and achieving other operational efficiencies—all while improving the quality of care. According to a recent HIMSS survey of healthcare leaders, technology is key to advancing the mission.
Janet King, senior director of market insights at HIMSS Media and Mary Kilmer, executive director for Oracle Healthcare, will discuss the results from new research on value-based care. You’ll learn about:
- The state of value-based care today
- The priorities driving value-based care initiatives
- The barriers getting in the way of data democratization and value-based care success
- The technology investments supporting the transition to value-based care
Leveraging disruptive technologies in provider supply chains
Another way to drive efficiencies and reduce costs is by examining the healthcare supply chain. Join us for a webcast with HealthLeaders that will explore the supply chain in depth. John Harvey, executive director with Oracle Industry Services will:
- Asses how new technologies are currently improving the supply chain
- Discuss how to leverage partners in the ecosystem to drive efficiency
- Give an easy-to-understand overview of the evolution of supply chain management (SCM) as a key component of a successfully run organization