Healthcare waste in administration concentrates on eight administrative tasks representing 12% of the total expenditures according to a new study.
Almost $10 billion annually could be saved by medical plans and providers in administrative waste, while the dental industry could save $3.4 billion. The administrative functions most critically impacting the expense line are related to the authorization for care, claim submission, and the revenue cycle process.
“While a greater percentage of business transactions are now conducted electronically, the U.S. continues to spend more on healthcare administration than any other nation,” says Kristine Burnaska, director of research and measurement at CAQH. “The Index offers a roadmap for those areas where further automation can drive down costs and burdens for both providers and plans.”