How much money is being wasted in health care every year (and climbing)

Health care's big money wasters

More than $1.2 trillion spent on health care each year is a waste of money. Members of the medical community identify the leading causes.


NEW YORK (CNNMoney.com) -- Down the drain: $1.2 trillion.

That's half of the $2.2 trillion the United States spends on health care each year, according to the most recent data from accounting firm PricewaterhouseCoopers' Health Research Institute.

What counts as waste? The report identified 16 different areas in which health care dollars are squandered. But in talking to doctors, nurses, hospital groups and patient advocacy groups, six areas totaling nearly $500 billion stood out as issues to be dealt with in the health care reform debate.

Too many tests
Doctors ordering tests or procedures not based on need but concern over liability or increasing their income is the biggest waste of health care dollars, costing the system at least $210 billion a year, according to the report. The problem is called "defensive medicine."

"Sometimes the motivation is to avoid malpractice suits, or to make more money because they are compensated more for doing more," said Dr. Arthur Garson, provost of the University of Virginia and former dean of its medical school. "Many are also convinced that doing more tests is the right thing to do."

"But any money that is spent on a patient that doesn't improve the outcome is a waste," said Garson.

money.cnn.com...

Over testing - $210 Billion

Processing claims - $210 Billion

Ignoring Doctors orders - $100 Billion

Ineffective use of technology - $88 Billion

and more
money.cnn.com...

Over testing, in part, can be attributed to, the fear of the "Law Suit"

One thing I noiticed is, there is No Mention of Drugs and all their friends.
If this isn't a waste of money I don't know what is!

1. Over prescribing drugs.
2. Over charging of these drugs by the Pharmaceutical Drug Cartels.
3. Producing and Marketing useless or harmful drugs.

It all begins with Pharm Barons and other family members like the
Medical Supply clan, sitting at the top of the Pyramid.

I'll star and flag your thread.

I find this interesting, that everybody is debating this health care bill, but yet they don't want to know the facts on why costs are so high. It's amazing.

I was always taught in order to fix a problem you have to know what is broke.

Anyway, so half of the money we spend on health care is wasted on frivolous things. Which means if we got rid off half the waste our percentage of GDP we spend on Health Care would actually be right in line with the rest of the world.

Imagine that. Good thread OP, I'll give it a bump.

Don't forget health care fraud.

psychbusters.net...

Another waste of money and insurance.

Originally posted by azureskys


Over testing - $210 Billion

Processing claims - $210 Billion

Ignoring Doctors orders - $100 Billion

Ineffective use of technology - $88 Billion

and more
money.cnn.com...

One thing I noiticed is, there is No Mention of Drugs and all their friends.
If this isn't a waste of money I don't know what is!

1. Over prescribing drugs.
2. Over charging of these drugs by the Pharmaceutical Drug Cartels.
3. Producing and Marketing useless or harmful drugs.

Star and Flag, and ...

I'd like to add to this likely very accurate list massive HMO and Insurance
stock and profit manipulation and huge amounts of money sucked out
of health care into just another money grab by these financial pirates.



[edit on 11-8-2009 by Ex_MislTech]