25% of total U.S. spending on healthcare can be avoided.
$760 billion – $935 billion is the estimated cost of waste in the U.S. healthcare system.
$191 billion – $282 billion is the projected potential savings from interventions that reduce waste.*
(*Excluding savings from administrative complexity)
Source: “Waste in the U.S. Health Care System—Estimated Costs and Potential for Savings,” JAMA.doi:10.1001/jama.2019.13978. Published online Oct. 7, 2019
inSight Advisory Can Help
HealthTrust’s consulting solutions help members reduce wasted spend in a number of areas, including purchased services. Some of those strategies include:
- Centralize all purchased services contracting under the supply chain.
- Implement a formalized bidding process.
- Include standard terms and conditions and quality-control measures in contracts.
- Negotiate volume-based contracts with one or two suppliers for the same purchased service throughout the system.
- Implement an analytics tool to identify, benchmark and track savings.
- Conduct supplier performance reviews throughout the life of each contract.
Contact Andy Motz, AVP Consulting.
See information on how HealthTrust’s inSight Advisory Solutions can help your facility reduce OR waste.Share Email