PITTSBURGH, March 20 (UPI) -- Nearly one in three dollars spent on healthcare in the United States go to administrative costs, a new study says.
Healthcare claims and billing accounts are mainly to blame for the high cost, according to a survey of 200 hospital and insurance company executives commissioned by the PNC Financial Services Group.
"Hospital and health plan executives identified significant inefficiencies in the business office," said Paula Fryland, executive vice president and manager of PNC's national health group.
They described "a medical claims, billing and payment process that is error prone, redundant and costly," Fryland said.
The money being spent does not appear to be achieving efficiency, according to the survey.
Hospital executives reported that one in five claims submitted, on average, is delayed or denied and 96 percent of all claims must be submitted more than once.
In addition, hospitals that did not submit claims electronically said they have to submit the average claim 11 times or more.
Meanwhile, insurance executives surveyed said they go back to hospitals two times, on average, to get all the information needed to pay a claim.
