Administrative wastes
Organizations include an administrative budget to help plan and manage general office expenses that work to improve the smooth running of an organization’s projects. Unfortunately, healthcare facilities have inflated administrative costs where the stocking of equipment mostly follows those with higher mark-up prices. As a result, the approach, although advised against, has fallen on deaf ears.
Minimal accountability on the side of the administrators within the technical and finance departments in healthcare facilities, agencies, and drug manufacturing firms has been the largest contributor to this form of waste (Wu, 2020). Lack of proper planning and a well-defined procurement process would cut down administrative expenses. Elimination of this form of wasteful spending would cut down the cost of treatment due to lower production and running costs. In addition, funds previously wasted would be used to fund research for pathologies and the development of new drugs and healthcare technologies.
References
The Patient Protection and Affordable Care Act. (2014). Retrieved from: https://www.dpc.senate.gov/healthreformbill/healthbill04.pdf?
Wu, L. (2020). Drivers of high US healthcare spending: an international comparative study. International Journal of Comparative Management, 3(3), 208-229.