Report: Simplifying office tasks could save health system $40 billion

Streamlining administrative procedures in healthcare would save the system some $40 billion per year, according to a new report from the Center for American Progress.

The liberal-leaning think tank said major savings could come from three key areas: integrating administrative rules and systems; coordinating similar processes; and creating a new federal office designed to simplify the logistics of healthcare.

"An aggressive agenda tackling administrative inefficiency would not only reduce unnecessary complexity and federal health expenditures but could also improve the quality of care provided," CAP said in a summary of its research.

CAP said administrative costs total roughly 14 percent of all healthcare spending in the United States, or roughly $361 billion per year. At least half of those costs are probably wasteful, according to CAP, which said $40 billion in annual savings are "eminently achievable."

---