Wasteful spending in U.S. Healthcare estimated up to $935 billion, studies show


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ST. LOUIS  – A new study from the Journal of the American Medical Association finds 25 percent of US health care spending is wasteful.  Researchers say $760 to $935 billion dollars are wasted every year.

No other country spends more on healthcare than the United States, with the gross domestic product share of healthcare spending estimated at nearly 18 percent and rising.

There are several factors including: 

19% (low) or 31% (high) Administrative complexity

18% (low) or 12% (high) Failures of care delivery

15% (low) or 14% (high) Pricing failures

15% (low) or 22% (high) Fraud and abuse

4% (low) or 4% (high) Failures of care coordination

Reducing wasteful spending is a promising avenue to curb annual increases in the country’s healthcare spending, according to the co-authors of the new research, which was published.



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