Prioritizing cost management at U.S. healthcare systems: Keys to better margins

As healthcare organizations grapple with rising costs and evolving payment models, achieving positive margins is more critical than ever.

The Peter G. Peterson Foundation reports that the U.S. allocates significantly more funds to fee-for-service healthcare than any other nation, nearly double the amount. Operating under a fee-for-service model incentivizes increased service volume over quality, which frequently results in excessive use of unnecessary treatments, labs and prescriptions.

Moreover, the same report states that administrative expenses associated with managing healthcare in America are four times more than those in other affluent countries. These costs include processes such as preauthorization, claim denials, assessment of medical necessity and dealing with multiple payers.

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