HIMSSCast: Despite high healthcare spending, outcomes worse in US than other developed nations

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A Health Affairs Council on Health Care Spending and Value Executive Summary released in February shows that since the 1970s, healthcare growth has outpaced economic growth. 

The number one reason, according to the report, is advancement in care, and, in particular, cancer care, that brings higher costs for these technological innovations.

But close behind is the issue of pricing, according to Alan Weil, editor-in-chief of Health Affairs.

The Executive Summary gives recommendations for reining in costs and in particular, the "literally hundreds and hundreds of billions of dollars that are not associated with the direct provision of clinical care," says Weil, in this conversation with Healthcare Finance News executive editor Susan Morse. 
 

Talking points:

• The administrative side of healthcare is incredible paperwork intensive.
• Claims processing, the credentialing of providers and prior authorization are resource intensive.
• Quality measurement has high levels of duplication and overlap, with a small variance from one measure to another that drives costs.
• Administrative streamlining could cut costs, but if you just digitize a bad process, you don't end up saving much.
• If everyone is running a separate process and uses different measures without having interoperability, just putting things on the computer doesn't save much.
• Use of prominent value-based payment models put forth by the Center for Medicare and Medicaid Innovation has not yet resulted in significant savings to payers, providers or patients.

More about this episode:

Administrative waste comprises 15 to 30% of healthcare spending, Health Affairs shows

US spends most on healthcare, has worst outcomes, finds Commonwealth Fund

Health benefit costs expected to rise 5.4% in 2023

Unplanned hospital readmissions represent significant cost

Comparing cancer costs challenging despite new price transparency rules

HIMSSCast: To cut expenses, hospitals should look at indirect spend

More Americans are avoiding healthcare due to cost uncertainty

Twitter: @SusanJMorse
Email the writer: SMorse@himss.org

Tracy Chu will offer more detail during her HIMSS23 session "Automation Improves Digital Education App Performance." It is scheduled for Wednesday, April 19 at 11:30 a.m. - 12:30 p.m. CT at the South Building, Level 5, room S505.