Wednesday, October 20, 2021

Two Resources on Healthcare's Costly Administrative Burdens in the U.S.

We constantly hear that U.S. healthcare has vastly higher administrative costs than anywhere else. (Here, here.)

Two new resources this week.   

In the first, McKinsey issues a major report (a 70 page report and 8 page summary) on administrative costs and potential solutions.  Hint: The administrative burden is basically $1 Trillion   Over ten years, that's $10 Trillion - triple the notorious current "infrastructure bill."

The McKinsey article is paired with a new, October 20, online companion article at JAMA - here.

Separately, there's an excellent long-format article on skyrocketing administrative costs for providers working with North Carolina Medicaid this year.   See Clarissa Donnelly-DeRoven's article at North Carolina Health News.


If you're enjoying these, try also Cass Sunstein's new September 2021 book, "SLUDGE," about red tape, paperwork, and how sludge stops us all from getting things done.  MIT Press.  At Amazon here.  It's only 168 pages, minimizing the administrative burden of actually reading it.

For a different view of admin burdens and health costs, see Valenti, 2015, here.