substantial contribution of each domain to excessive health care costs (see Table S-1).
Although these estimates have unknown overlap, the sum of the individual estimates—$765 billion—suggests the significant scale of waste in the system. Two other independent and differing analytic approaches—considering regional variation in costs and comparing costs across countries—produce similar estimates, with total excess costs approaching $750 billion in 2009 (Farrell et al., 2008; IOM, 2010; Wennberg et al., 2002).
TABLE S-1 Estimated Sources of Excess Costs in Health Care (2009)
|Category||Sources||Estimate of Excess Costs|
|Inefficiently Delivered Services||
|Excess Administrative Costs||
|Prices That Are Too High||
|Missed Prevention Opportunities||
SOURCE: Adapted with permission from IOM, 2010.