Researchers focus on six categories of waste: failure of care delivery, failure of care coordination, overtreatment or low-value care, pricing failure, fraud and abuse, and administrative complexity.


  • This new research updates earlier estimates of wasteful spending that focus on six categories identified by the Institute of Medicine.
  • In the new research, the biggest category of wasteful spending is administrative complexity, with annual waste estimated at $265.6 billion.
  • Interventions to reduce waste in the six Institute of Medicine categories would result in annual savings from $191 billion to $282 billion.

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