And there it is, ding ding we have a winner. I would venture to guess that we (the USA) spend at least as much, if not more on Administrative costs than on the actual healthcare. Think about it, for the majority of procedures, more time is spent on pre-approving, and approving, finding correct billing codes, billing insurance the obscene over inflated amounts, then agreeing to lower amounts, and then eventually sending out the bill to the patient for the balance. Then waiting.....then potential collections or negotiated settlement. It's ridiculous.Yep. There's a tremendous amount of unnecessary complexity in the multiple fragmented health insurance systems we have in the US. I would guess there is a lot of non value added admin cost as a result.
Years back my son was in a bad accident. Went to a local hospital that ran as many tests as they could think of, then told us they were unequipped to handle the necessary care and that he would need to be moved to another local hospital. The other hospital was about a 20 minute drive away. Yet, they forced us to use the helicopter service and said it was covered by insurance. So, instead of taking a 20 minute ambulance ride, it took them about 30 minutes to prep the helicopter and about 15 minutes to make the trip. Then about 2 months later the fun crazy billing procedure begins. My first bill for the "free" helicopter ride was close to $20k. Turns out that some of it is covered by insurance but if they bill $35k, and insurance pays $7k, they expect you to pay the balance. All for a 15 minute helicopter ride. Turns out that this is a standard practice at many hospitals where you have helicopter "profit centers" that are independent, and get the forced referrals. A friend of mine's son who only had a broken ankle was forced thru the same routine.
And as for the many tests they ran, none of them were transferable or usable at the next hospital, so they all had to be re-run. Who thinks that this is an efficient system? It is absolutely crazy. And this was not in the boondocks. It was in Philadelphia, PA.