replay question 1:
One type of health care spending that should be considered wasteful concerns the treatment that is provided to patients who experience never events. Never events are medical errors that should never occur such as those related to surgical events (Agency for Healthcare Research and Quality [AHRQ], 2019). Under a mandate by the Centers for Medicare and Medicaid Services (CMS), Medicare would no longer pay for the costs associated with never events. Hospitals need to find ways to prevent never events. If eliminated, hospitals would save money and better quality care would be provided to patients.
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In the article of Milbank quarterly where a study was conducted in 2008 by Bentley and colleages here they finding that waste is caused by factors such as health insurance and medical uncertainties that encourage the production of inefficient and low-value services. They also mentioned that many attempts made to decrease such waste have face so many challenges, such as the high costs of initial investment, unintended administrative complexities, and trade-offs among patients’, payers’, and providers’ interests. While they categorizing waste may help identify and measure general types and sources of waste, successful reduction strategies must integrate the administrative, operational, and clinical components of care, and proceed by identifying goals, changing systemic incentives, and making specific process improvements. (Bentley, et al, 2008)