Introduction:

CMS recently released the report of 2022 healthcare spend and it was a staggering 4.5 trillion dollars and that accounted for over 17% of the GDP of the US, which was 25.5 trillion dollars in 2022. American Medical Association (AMA) estimates that out of the total healthcare expense between 10 to 15% of that is spent on administrative wastage. That would mean that between 450 to 600 billion is spent on administrative wastage, in other words 2% or more of the GDP is spent on administrative wastage. The worse part of this is that in the entire care journey all the key personas involved – patient, patient’s family, physician, physician staff etc., are all unhappy with the current state and it has resulted in decreased quality of care, physician burnout and staff burnout. The current situation emphasizes the need for a comprehensive strategy to address raising healthcare costs and improve the quality of care, while reducing physician and staff burnout. It is super critical that healthcare organizations discover the importance of short-term solutions within existing processes and a visionary longer term approach for lasting efficiency.