Reducing the Cost of Poor Quality

Reducing the Cost
of Poor Quality
Medical Care

Background

Employers have experienced a rise in health care expenditures. MBGH and other organizations looked to create a report to show exactly why that is.

Outcomes

This report lead to Choosing wisely campaign and Take Control of your Health initiative to help MBGH members educate their populations and reduce costs



Business Case for Employers

  • 30 percent of all direct health care outlays today are the result of poor-quality care consisting primarily of overuse, misuse, and waste1
  • With national health expenditures of roughly $1.4 trillion in 2004 the 30- percent figure translates into $420 billion spent each year as a direct result of poor quality
  • The COPQ report estimates that poor-quality health care costs the typical employer between $1,900 and $2,250 per covered employee each year2

Project Goals

  • Report the costs of overuse, underuse and misuse of health care and how it relates to purchaser’s roles to solve performance problems
  • Create awareness of the over expenditures in the health care system

1Juran Institute
2COPQ Report

Employer Opportunities

If you are interested in reducing the cost of poor quality health care in your population, contact Cheryl Larson