An October 2019 communication in the Journal of the American Medical Association revealed that an estimated $760 billion to $935 billion dollars are wasted every year in the American healthcare system. To put that estimate into perspective, one trillion dollars accounts for about 25% of total healthcare spending.
Healthcare access and healthcare costs have been hot button topics for decades. These recent findings further emphasize how a large, complex system sorely needs innovative solutions.
According to the JAMA communication, pricing failure and administrative complexity are the two most wasteful domains in healthcare, to the tune of an estimated 500 billion dollars, nearly half of the total amount wasted every year. They are also the two domains that can most effectively be improved through software.
Here are a few techniques that could be used to address these financial pain points:
- Automation of billing practices and reviews can flag errors and duplicates, even before these errors are passed on to the patient or insurer.
- Revised workflows that incorporate state-of-the-art tools can streamline processes and remove unnecessary complexity.
- Bolstering data security with encryption and robust network security can reduce the effort spent to make legacy systems compliant with modern security regulations.