ADMINISTRATIVE COSTS IN THE US HEALTHCARE SYSTEM: IS SIMPLIFICATION AND TECHNOLOGY A SOLUTION TO EFFICIENCY AND GROWING HEALTHCARE COSTS?

Abstract

With the conclusion of elections in the United State of America, the Government is aiming to reduce the Government’s expenditure by USD 2 Trillion and increase efficiency by dismantling bureaucracies. It is, therefore, timely to review as if the latest research supports this. This paper assesses the proclaimed cost cutting and inefficiency in the healthcare administration of the United States by focusing only on billing practices, paperwork, claims processing, and emergency preparedness. It examines as if the digital technologies like artificial intelligence, telemedicine, and electronic health records can optimize these processes, cut costs, and improve efficiency. The study draws on latest literature, revealing the potential for cost cutting of up to $265 billion per annum by simplifying administrative tasks. Further, it also examines the impacts of policy reforms such as No Surprises Act and Centers for Medicare & Medicaid Services Price Transparency Rule. The findings show that embracing digital tools and creating standardized systems could greatly reduce the costs and enhance the efficiency and effectiveness of the U.S. healthcare system.