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
“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
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.
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