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A $250B healthcare reform opportunity in three years: Reducing administrative complexity

New research by David Cuttler with McKinsey and Partners published in JAMA shows that there are $250B in healthcare savings annually. How?

By reshaping administrative spending by payers and providers, within current system and without compromising care. No revolution, no defunding of medical innovation - but set of 30+ pragmatic interventions worth as much as 50% of all drug spend.

The conclusion of the report is that an estimated $265 billion, or approximately 28% of annual administrative spending, could be saved without compromising quality or access by implementing about 30 interventions that could be carried out in the next 3 years. This set of interventions works within the structure of today’s US health care system in order to preserve its market nature (eg, multi-payer, multi-clinician, multi–health care center) and the associated benefits (eg, world-leading innovation in care delivery).

Let's start here.

JAMA. 2021;326(17):1677-1678. doi:10.1001/jama.2021.17315


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