Harvard Business Review

How the U.S. Can Reduce Waste in Health Care Spending by $1 Trillion

By Nikhil Sahni, Anuraag Chigurupati, Bob Kocher, MD, and David M. Cutler

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ARTICLE SUMMARY

Often proposals to improve the health care system focus on eliminating waste. A comprehensive study of popular proposals revealed that both supply-side and demand-side proposals eliminate waste, but not nearly enough.

In this article the authors explain why, in addition to implementing everything that has been proven to work, the United States should do more to create an environment that encourages additional innovations. New ideas are needed to address areas of waste such as administrative complexity that known strategies cannot eliminate.