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US Health Care Wastes $700B a Year

A third of spending is lost to pointless treatment, paperwork, fraud

By Jason Farago,  Newser Staff

Posted Oct 26, 2009 5:53 AM CDT
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(Newser) – A study by Thomson Reuters released today confirms President Obama's contention that the American health care system is hemorrhaging billions of dollars a year, with one-third of the cost of care wasted on inefficiency, mistakes, and fraud. The report, which cites dozens of research papers, finds that about $700 billion is misspent each year, 37% of which is attributed to overuse of antibiotics and tests to avoid malpractice exposure.


Another 22% of waste is sucked up by kickbacks, fraudulent Medicare claims, or other scams. Inefficiencies, such as a paper-based records system, account for 18% of the waste, and medical mistakes 11%. "The opportunities to slow the fiscal bleeding are substantial," said the head researcher. "We can reduce health care costs without adversely affecting the quality of care or access to care."

Dr. Pedro Jose Greer examines Medicaid patient Kenneth Caldwell, 50, in his office at Mercy Hospital in Miami.
Dr. Pedro Jose Greer examines Medicaid patient Kenneth Caldwell, 50, in his office at Mercy Hospital in Miami.   (AP Photo/Lynne Sladky)
A family nurse practitioner at the University of Southern Maine examines a patient.
A family nurse practitioner at the University of Southern Maine examines a patient.   (AP Photo/Pat Wellenbach)
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COMMENTS
Showing 3 of 39 comments
thejoint00
Oct 27, 2009 12:25 PM CDT
during a recent doctor re assignment, my wife threw her back out and had to wait 45 days for a new patient appointment to open up, or go to the emergency room. we want less people in the ER not more, but then again, I guess coverages lapses are just part of being in the military.
NewserScooter
Oct 27, 2009 6:24 AM CDT
What doc do you know who's salary is "growing"? I know plenty who are having cost increases for Malpractice ins. Health ins. employment costs, rent, lease rates, TAXES, and this year a nice 20-40% cut from Medicare? What world are you referring too?
NewserScooter
Oct 27, 2009 6:22 AM CDT
Congress !
Health • Money • Politics • US

 
health care • health care costs • Medicare • health care reform • malpractice

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