Health outcomes and quality of care can be significantly improved without additional expenditure increases by identifying inefficient healthcare spending and reallocating these resources to other parts of the system.
By reducing wasteful spending in healthcare, we can enable the transition from low-value to high-value care, freeing up resources that could be used for interventions that are more valuable to patients, health systems, and communities. By doing so, we can facilitate the shift towards healthcare systems that are more outcomes-focused and patient-driven.
The concept of efficiency should not be confused with short-term cost-cutting measures. The latter approach focuses on reducing inputs and negatively impacts health outcomes. Cost-cutting strategies should be avoided. An efficient healthcare system is one that maximizes patients’ outcomes for any given health investment or one that maintains the same outcomes while achieving financial savings. In order to achieve efficiency gains, budgets should not be cut, but spending can be redirected to innovation and higher quality care.