According to Revcycle Intelligence, administrative expenditures for healthcare were over $812 billion in 2017, accounting for over one-third of costs, according to this study by the Annals of Internal Medicine.
The high administrative costs were attributed to inefficiencies in the multi-payer system, siting that Canada spent about half that on administrative costs.
Administrative spending has been on the rise since 1970.
- Payers represented 9.6 percent of total expenditures by insurers and other third-party payers and 7.9 percent of national health expenditures.
- Hospitals accounted for 26.6 percent.
- Physician offices administrative costs also increased to over $169,000 for each physician.
- US nursing homes came in at 26.7 percent.