Balancing the challenges of underdiagnosis (missing or delaying important diagnoses) and overdiagnosis (labeling patients with diseases that may never cause suffering or death) can feel like walking across a canyon on a tightrope. Diagnostic errors occur in an estimated 10 percent to 20 percent of cases and will affect most Americans at least once in their lifetime. They are the leading cause of medical malpractice claims, harming more than 4 million people at a cost of more than $100 billion. Continue reading
When Safeway, a grocery store chain, introduced reference pricing for the most commonly used clinical laboratory tests, spending on those tests dropped by 32 percent over three years, according to a recent study.
Using reference pricing, Safeway saved $2.57 million over the three years of the study (2011 to 2013). Of that amount, $1.05 million (41 percent) went back into consumers’ pockets, and the remaining $1.70 million accrued to Safeway, the study showed. Also, reference pricing led to a 32 percent drop in the average price that consumers paid for 285 different lab tests.