Reducing waste in the U.S. health care system can lower costs and allow resources to be allocated to areas of care that need it most, said Dr. William Shrank, Humana’s Chief Medical and Corporate Affairs Officer.
Dr. Shrank recently wrote an opinion piece that was published in Morning Consult.
You can read it here.
He referenced a recent study conducted by Humana and the University of Pittsburgh School of Medicine, which found that approximately 25 percent of all U.S. health care spending, or $760 billion to $935 billion, can be classified as waste.
He noted that waste could be reduced by reducing administrative complexity, addressing pricing failures, and implementing effective clinical models.
“By leveraging value-based payment models (aligning reimbursements for providers to reward higher-quality care, better outcomes and lower costs, rather than simply rewarding doctors for the number of services they offer) that align the interests of health plans and clinicians, we should be able to massively reduce this complexity,” he wrote. “Moreover, the Centers for Medicare and Medicaid Services and the industry are building momentum to deliver the data interoperability that will reduce administrative complexity, which will help rein in costs.”
On pricing, he noted: “Efforts to advocate for policies that promote greater competition in the marketplace and price transparency for patients should drive considerable savings. As we have seen with the Medicare Advantage program, competition reduces costs and improves patient health outcomes.”
He also said, “Evidence shows us that scaling effective clinical strategies and programs across the country can help achieve these savings — for example, providing care coordination, health coaching and proactive outreach to patients with diabetes or congestive heart failure.”
Read the article here.