One of the main goals in health care reform lies in reducing waste.
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To make health care reasonably profitable for private payers and more affordable for patients, those who manage health care must focus on reducing cost, which is far easier than increasing the health benefit or medical loss ratio.
$600-$850 billion healthcare system waste per annum--Unflappable Sen. Tom Coburn 'unflappably' used Thomson Reuters' "Where Can $700 Billion In Waste Be Cut Annually From the U.S. Healthcare System?" [PDF; 10/2009] as an authoritative reference; it names the most significant drivers of wasteful healthcare system spending: Unwarranted Use: $250-$325 billion Fraud and Abuse: $125-$175 billion Lack of Care Coordination: $25-$50 billion Administrative System Inefficiencies: $100-$150 billion
"Up to 30% of Medicare spending is wasted on needless care." "After adjusting for differences in health, income, medical price and other factors, the Dartmouth researchers’ overall conclusion is that the more costly areas and institutions provide a lot more tests, services and intensive hospital-based care than the lower cost centers. Yet their patients fare no better and often fare worse because they suffer from the over-treatment."