This exhibit from McKinsey clearly show that the biggest gain would come from fixing the medical payment system which consumes 15% or more of each dollars spent on health care-compared with about 2% in retail.
Per their analysis, it is the inefficiency of dollars that go from consumers to medical providers ($250 million) and the $1.3 trillion that insurance companies also send to providers in the form of fragmented, paper-based, and manually processed transactions.
As providers, it is our hi cost of doing this that is particularly cost damaging. In fact, processing claims is a $300 billion per year cost which is a higher than consumers pay to providers!
In a political year where health care agendas are that the forefront, let’s find a candidate who can address the largest source of the problem.
