Health Care Money Wasters

PriceWaterhouse Cooper's Health Research Institute just released a new report on the 3 biggest money wasters in our current health care system:


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. The problem is called "defensive medicine."


Annoying Claim Forms

Inefficient claims processing is the second-biggest area of wasteful expenditure, costing as much as $200 billion annually. "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. "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."


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. 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.