Healthcare spending in the US accounts for 18% of GDP, a percentage that is twofold the average amount spent in other developed countries. The Committee for a Responsible Federal Budget projects that costs will continue to increase over time.
Yet this figure is unsustainable. Especially considering how much healthcare spending is wasteful.
If your business is struggling with excessive and wasteful spending, you need a strategy to address the factors that legislation can’t. That’s why we’ve created this guide to understanding waste in health care and one solution you can deploy now.
Want to know what contributes most to healthcare waste and how medical loan financing can? Keep reading for everything you need to know.
How Much Waste Does the US Health System Produce?
According to a new review by JAMA, healthcare systems waste an estimated $760 billion to $935 billion per year. That’s nearly 25% of total health care spending, projected to hit almost $4 trillion by the end of 2019.
And the biggest contributing factor to healthcare waste? Administrative complexity.
In the JAMA study, excess spending associated with health insurance, legislation, and overly bureaucratic processes contributed to administrative complexity. And this category accounted for $256.6 billion of the estimated total healthcare waste. The second-highest category, failure to deliver care, only costs providers between $102 billion and $165 billion.
Why Medical Loan Financing is the Perfect Solution
Waste from administrative complexity may be devastating, but it’s also preventable. How? With a medical loan financing program that reduces your debt collection workload and helps patients pay their responsibilities faster.
You may not have control over payers or legislation. But patient loans give you power over administrative spending when it comes to collection efforts.
Want to know more about how medical loans for patients can help your hospital cut down on wasteful spending? Get in touch with Epic River today and learn more about how our patient lending program can benefit your business.