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What Requires Legal Change and What Doesn’t?

Editor’s note: What requires new laws? What requires regulatory intervention? And what will not yield regardless?

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Estimated range of healthcare system waste is $600-$850 billion annually

At President Obama’s Healthcare Summit, SEN. Tom Coburn cited Thomson Reuters’ white paper “Where Can $700 Billion In Waste Be Cut Annually From the U.S. Healthcare System?” The report identifies the most significant drivers of wasteful healthcare spending as follows:

1. Administrative System Inefficiencies: $100-$150 billion

2. Provider Inefficiency and Errors: $75-$100 billion

3. Lack of Care Coordination: $25-$50 billion

4. Unwarranted Use: $250-$325 billion

5. Preventable Conditions and Avoidable Care: $25-$50 billion

6. Fraud and Abuse: $125-$175 billion

Source: Thomson Reuters. “Where Can $700 Billion in Waste Be Cut Annually From the U.S. Healthcare System?” October 2009. http://www.factsforhealthcare.com/whitepaper/HealthcareWaste.pdf

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March 9, 2010 - Posted by | Cost, Federal Government, Fraud and Abuse, Overuse, quality | , , ,

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