Health

Frontiers of efficiency: Doing More With Less In Healthcare

May 26, 2017

Global

May 26, 2017

Global
Aviva Freudmann

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Aviva has nearly 40 years of experience as a journalist, researcher and editor covering a variety of industries, including healthcare, financial services, insurance and risk management, transport, logistics, energy and environmental protection.

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The most productive approach to increasing healthcare efficiency--defined as containing costs while maintaining or improving medical outcomes--is to focus resources on disease prevention and health promotion. Central control of service standards and careful monitoring of productivity, in particular by transferring routine care to non-physicians, have also been used to good effect.

Even as government budgets shrink, medical costs continue to rise due to ageing populations and expensive new treatments. The World Health Organisation calculates global health spending at US$8trn, between 10% and 11% of global GDP. Kaveh Safavi, global head of healthcare at consultancy Accenture, estimates that healthcare spending increases 1-3% faster than the rate of economic growth. Governments know they must contain healthcare costs. This report looks at examples of successful initiatives to control healthcare costs while maintaining or improving medical outcomes.

The report, based on desk research and 13 in-depth interviews, reaches the following main conclusions:

  • Prevention focusing on public education is a leading way to cut costs and improve outcomes
  • Coordinating care and moving care from hospital to community settings is a second major approach to healthcare efficiency
  • Central monitoring of medical practices, including setting standards for providers, also helps to contain costs and ensure uniformity in service quality
  • Workforce productivity is becoming a central focus of efficiency efforts

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