Unwarranted Variations in Care

Origins and approaches to reduction

Unwarranted care variation exists within most provider organisations, and represents a USD $20M–$30M (per $1B in revenue) actionable savings opportunity for a typical organisation. Clinical care variation has many drivers, including payer mix and contracts, provider risk-bearing levels, doctor-induced demand, hospital and practice culture, and doctor specialty mix.

Organisations bearing population risk with employed doctors and a strong primary care base are best equipped to reduce care variation, as the financial interests of hospitals, doctor groups, and specialties are best aligned.

This research report identifies sources of unwarranted care variation and outlines ways you can address them.

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