Unwarranted care variation exists within most provider organizations, and represents a $20M–$30M (per $1B in revenue) actionable savings opportunity for a typical organization. Clinical care variation has many drivers, including payer mix and contracts, provider risk-bearing levels, physician-induced demand, hospital and practice culture, and physician specialty mix.
Organizations bearing population risk with employed physicians and a strong primary care base are best equipped to reduce care variation, as the financial interests of hospitals, physician 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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