Reducing Waste in Health Care
It has become common wisdom that 30 to 40 cents of each health care dollar is wasted, that is, spent on no-value-added activities; whether or not that wisdom is valid, it is a fact that the proportion of the U.S. Gross Domestic Product (GDP) devoted to health care spending is 50% greater than in any other country and growing, without any evidence that health care in this country is better. In fact, health care outcomes in the U.S lag those of other countries which spend proportionately less on health care.
Ironically, in the face of the growing hue and cry for improved efficiency, confusion reigns over the definition of this term and how improved efficiency might actually be realized. But waste in health care is vividly apparent, and its potential reduction is actionable at various levels. Opportunity areas include systems redesign in health care organizations, such as through adoption of the Toyota Lean methodology; implementation of electronic health records; placing evidence-based limitations on the deployment and use of new technologies; and payment system reform. Virtually all of these opportunities create corresponding new opportunities to improve patient safety and health care quality.
The Waste Reduction and Improving Efficiency initiative will systemically categorize and describe opportunities for waste reduction and improved patient care, identify accountabilities for their pursuit, and frame approaches to measuring success in reducing waste in hospitals and other organized health care delivery settings.
