AI Gold Seen in Healthcare Waste NVIDIA Blog

A new report estimates the cost of waste in the U.S. healthcare system alone ranges as high as $935 billion a year, about 25 percent of total healthcare spending. A growing army of startups and established practitioners sees the inefficiencies as a trillion-dollar opportunity to apply AI. The U.S. spends about 18 percent of its gross domestic product on healthcare, more than any other country. A report published online by the Journal of the American Medical Association surveyed 54 studies to estimate annual waste figures in six broad categories, including failures from choosing ineffective treatments (up to $166 billion), failures from coordinating multiple treatments ($78 billion), fraud and abuse ($84 billion) and administrative complexity ($266 billion). "Implementation of effective measures to eliminate waste represents an opportunity to reduce the continued increases in U.S. health care expenditures," the report concluded.