Search
 
Commentary

Fixing health care starts with better administrative systems

The share of U.S. health-care spending devoted to administrative costs, including billing, is roughly three times what it is in other affluent countries.

By The Bloomberg Editors | Updated on March 27, 2018
Medical bill To a large extent, insurance companies continue to maintain distinct billing codes and forms, and providers still use separate computer systems for medical records and billing. (Photo: Shutterstock)

The American health-care system has a unique problem with paperwork. The sheer number of participants — doctors, hospitals, clinics, insurance companies, patients — makes settling payments complicated, time-consuming and really expensive. The share of U.S. health-care spending devoted to administrative costs, including billing, is roughly three times what it is in other affluent countries, and it’s a major reason the U.S. spends twice as much on health care.

Some health clinics employ more clerks than care providers — not just to generate invoices but to send along the patient information insurers need to approve treatments, to dispute insurer decisions denying payment, to fix mistakes, to handle patients’ questions, and on and on. For every $1 billion in revenue, the health-care system employs the equivalent of 770 full-time people to settle the bills. That’s almost eight times more than other industries. And doctors have to spend inordinate time dealing with red tape.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

BenefitsPRO

Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2024 ALM Global, LLC. All Rights Reserved.