Low-value health care costs $345B each year and provides little benefit

Low-value health care is treatment that offers little to no clinical benefit to patients yet is a major drain of resources often at the detriment to patients.

Katie KoziaraFebruary 26, 2020

Low-value health care costs $345B each year and provides little benefit

PhRMA_Value_Collaborative_Reversed

Low-value health care is treatment that offers little to no clinical benefit to patients yet is a major drain of resources often at the detriment to patients. Low-value health care is one of the biggest drivers of health care spending, costing an estimated $345 billion each year. In 2015, spending on these types of items and services included:

  • $928 million on population-based Vitamin D screening
  • $483 million on antibiotics for sinusitis

These costly items and services often have no impact on a patient’s wellbeing and could directly contribute to health care system inefficiencies, medical errors and wasteful spending. That’s why last month, the Research Consortium for Health Care Value Assessment released a web-based tool allowing users to visually track the prevalence and spending associated with the administration of low-value services.

Designed with state-level organizations in mind, this low-value care visualizer distills information on how many patients experienced low-value care and how much money was spent on those treatments. For example, the tool analyzed commercial-based claims data from Virginia and found that 41% of members received at least one low-value care service and that 38% of overall spending, or approximately $706 million, was attributed to low-value care.

Top 5 Costliest Lo-Value Care Items VA Ad_2

Tools like these can help us move toward a more value-driven health care system that works better for patients. Learn more and use the tool here.

This website uses cookies and other tracking technologies to optimize performance, preferences, usage, and statistics. By clicking “Accept All”, you consent to store on your device the cookies and other tracking technologies that require consent. You can tailor or change your preferences by clicking “Manage My Cookies”. You can check our privacy policy for more information.