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Overtreatment

Does all that extra care actually make people healthier?

About a quarter of US health spending is estimated waste, roughly 760 billion to 935 billion dollars a year across six categories. Guideline-discordant services stay common: more than half of low-risk cataract patients still get needless pre-op testing.

Question

The problem

Overtreatment is a value and safety problem across the U.S. care landscape: hospitals and clinicians can deliver more visits, procedures, tests, or spending without improving outcomes. The strategic risk is that low-value utilization consumes capacity and exposes patients to harm while crowding out services that would improve access or health.

The recommendation

Treat low-value care reduction as a clinical-quality and capacity-release program. The recommended approach is to identify high-intensity practice patterns, align payment with demonstrated benefit, and reinvest avoided waste into services that improve access, prevention, and outcomes.

How big, how common

The dollar scale of waste, how much is truly clinical, how routinely low-value services still get delivered, and how much is recoverable.

$760B to $935B
Estimated annual US health care waste
About a quarter of total US health spending, 2019. Recoverable savings estimated at 191 billion to 286 billion dollars.
$191B to $286B
Estimated recoverable share of US health care waste
Roughly a quarter of the 760 billion to 935 billion dollar total, 2019.

Where the waste sits: overtreatment is only the fourth-largest bucket

Bars show the high estimate for each category, with the low-to-high range in the label gutter. Clinical overtreatment, highlighted, is dwarfed by administrative complexity and pricing failure.

Read it this way Overtreatment or low-value care, highlighted, is only the fourth-largest of six categories at up to 101.2 billion dollars, well behind administrative complexity at 265.6 billion and pricing failure at up to 240.5 billion. This argues against treating clinical overtreatment as the main driver of the 760 billion to 935 billion dollar total. The larger dollars sit in administrative and pricing failure. Use this chart to distinguish more care from better care, and to see why the recommendation targets high-intensity, low-benefit utilization rather than across-the-board cuts.

$0B $125B $250B $375B $500B Administrative complexity $265.6B $265.6B Pricing failure $230.7B to $240.5B $240.5B Failure of care delivery $102.4B to $165.7B $165.7B Overtreatment or low-value care $75.7B to $101.2B $101.2B Fraud and abuse $58.5B to $83.9B $83.9B Failure of care coordination $27.2B to $78.2B $78.2B
⊞ data table⬇ CSV
CategoryLow estimate (USD billions)High estimate (USD billions)
Administrative complexity265.6265.6
Pricing failure230.7240.5
Failure of care delivery102.4165.7
Overtreatment or low-value care75.7101.2
Fraud and abuse58.583.9
Failure of care coordination27.278.2

Shrank, Rogstad, and Parekh, Waste in the US Health Care System, JAMA · 2019 · source

How often low-value services get delivered anyway

Share of eligible patients who received a service that guidelines advise against.

Read it this way More than half of Medicare cataract patients, 53.0 percent, received pre-op testing the guidelines advise against, and even the lowest rate shown, imaging for low-back pain at 27.2 percent, means more than one in four eligible patients got a discouraged service. These four bars come from separate studies with different populations and years, not one representative sample of all low-value care. Use this chart to distinguish more care from better care, and to see why the recommendation targets high-intensity, low-benefit utilization rather than across-the-board cuts.

0.0% 25.0% 50.0% 75.0% 100.0% Pre-op testing before cataract surgery Medicare, 2010 to 2011 53.0% Antibiotics for viral infection Adults 20 to 64, 2010 to 2011 43.0% PSA screening in men 70 and older Medicare, 2016 to 2018 38.6% Imaging for low-back pain Medicare 66+, 2007 to 2011 27.2%
⊞ data table⬇ CSV
Low-value serviceDelivery rate (percent)Population and period
Pre-op testing before cataract surgery53Medicare, 2010 to 2011
Antibiotics for viral infection43.8Adults 20 to 64, 2010 to 2011
PSA screening in men 70 and older38.6Medicare, 2016 to 2018
Imaging for low-back pain27.2Medicare 66+, 2007 to 2011

Peer-reviewed low-value-care studies (Tan 2015, Fleming-Dutra 2016, Chen 2015, Kim 2022) · 2011 to 2018 · source

Three independent waste estimates over time

Each point is a separate published study, not a continuously tracked series. The dashed lines show each study's low and high bounds.

Read it this way The midpoint traces 750 billion dollars in 2009, a dip to 734 billion in 2011, then a rise to 847.5 billion in 2019, but because each point comes from a separate study with its own definitions and methods, read this as three independent snapshots agreeing waste is large and persistent, not as a smooth continuous trend. Use this chart to distinguish more care from better care, and to see why the recommendation targets high-intensity, low-benefit utilization rather than across-the-board cuts.

Caveat Each study used different data years, category definitions, and methods, so read these as three snapshots of a persistently large estimate, not a smooth trend.

$0B $250B $500B $750B $1,000B 200920112019 High boundMidpointLow bound STUDY SPENDING YEAR ESTIMATED WASTE (USD BILLIONS)
⊞ data table⬇ CSV
Study yearLow (USD billions)Midpoint (USD billions)High (USD billions)Study
2009750750750Institute of Medicine, Best Care at Lower Cost
2011476734992Berwick and Hackbarth, JAMA
2019760847.5935Shrank, Rogstad, and Parekh, JAMA

IOM 2012, Berwick and Hackbarth 2012, Shrank et al 2019 · 2009 to 2019 · source

The geography of overtreatment

For the same price- and demographic-adjusted Medicare population, care intensity varies widely by region, yet higher spending buys no survival benefit.

1.72x
Highest-to-lowest regional Medicare spending ratio, fully price and demographic adjusted, 2018
13,678 dollars per enrollee in Miami vs 7,967 in Santa Cruz. National average 10,786 dollars.
About 5x
Physician visits in the last six months of life, highest vs lowest region, 2011
61.0 visits per decedent in McAllen TX vs 11.2 in Ogden UT, with no survival benefit.

Adjusted Medicare spending per enrollee, by region

Each dot is one Hospital Referral Region. Spending is fully adjusted for price, age, sex, and race, so the 1.72-fold spread is care intensity, not prices or sicker patients. The line marks the national average.

Read it this way The spread from Miami at 13,678 dollars down to Santa Cruz at 7,967, a 1.72-fold difference, is fully adjusted for price and demographics, so it reflects care-intensity choices rather than sicker patients or higher local prices. Only the file's named extreme regions are plotted, so this shows the range of variation, not where a typical middle-of-the-pack region falls. Use this chart to distinguish more care from better care, and to see why the recommendation targets high-intensity, low-benefit utilization rather than across-the-board cuts.

Caveat Only the file's named extreme regions carry values. A full map of all 306 regions is not in this dataset.

$0 $5,000 $10,000 $15,000 $20,000 Miami, FL $13,678 Munster, IN $13,622 Monroe, LA $13,619 Los Angeles, CA $13,514 Wichita Falls, TX $13,402 McAllen, TX $13,372 Anchorage, AK $8,251 Burlington, VT $8,202 Grand Junction, CO $8,101 Honolulu, HI $8,090 Santa Cruz, CA $7,967 National average
⊞ data table⬇ CSV
Hospital Referral RegionAdjusted Medicare spending per enrollee (USD)
Miami, FL13678
Munster, IN13622
Monroe, LA13619
Los Angeles, CA13514
Wichita Falls, TX13402
McAllen, TX13372
National average10786
Anchorage, AK8251
Burlington, VT8202
Grand Junction, CO8101
Honolulu, HI8090
Santa Cruz, CA7967

Dartmouth Atlas of Health Care, Geographic Variation · 2018 · source

Physician visits in the last six months of life, by region

Physician visits per decedent in the last six months of life. A patient in the highest-intensity region saw physicians about five times as often as one in the lowest, with no survival benefit.

Read it this way McAllen's 61.0 visits per decedent versus Ogden's 11.2, about a five-fold difference, echoes the same pattern the spending chart shows: more intensity with no documented survival gain. These are 2011 figures for the file's listed extreme regions only, and the national average had already fallen to 26.3 by 2018, so the true gap today may be narrower than this snapshot suggests. Use this chart to distinguish more care from better care, and to see why the recommendation targets high-intensity, low-benefit utilization rather than across-the-board cuts.

Caveat These are the file's 2011 endpoint regions. Per-region 2018 values are not in the dataset. The national average fell from 28.8 in 2011 to 26.3 in 2018.

0.0 25.0 50.0 75.0 100.0 McAllen, TX 61.0 Los Angeles, CA 60.4 Newark, NJ 57.5 Appleton, WI 12.1 Idaho Falls, ID 11.9 Ogden, UT 11.2 National average, 2011
⊞ data table⬇ CSV
Hospital Referral RegionPhysician visits per decedent, last 6 months of life (2011)
McAllen, TX61
Los Angeles, CA60.4
Newark, NJ57.5
National average28.8
Appleton, WI12.1
Idaho Falls, ID11.9
Ogden, UT11.2

Dartmouth Atlas of Health Care, Geographic Variation · 2011 · source

The highest-spending regions delivered far more care

Care delivered in the highest-spending regions versus the lowest, as a rate ratio. The reference line marks equal intensity. Individual utilization measures range from 1.52 to 2.36 times the low-spending regions.

Read it this way New inpatient consults and inpatient visits show the widest gaps, at 2.36 and 2.13 times the low-spending regions, while ICU days and inpatient days sit lower but still clear the equal-intensity line at 1.0. This chart shows utilization rate ratios only. Whether that extra care improved outcomes is what the next chart answers, not this one. Use this chart to distinguish more care from better care, and to see why the recommendation targets high-intensity, low-benefit utilization rather than across-the-board cuts.

0.00× 0.63× 1.25× 1.88× 2.50× New inpatient consults 2.36× Inpatient visits 2.13× ICU days 1.55× Inpatient days 1.52× Equal intensity
⊞ data table⬇ CSV
Utilization measureHighest vs lowest quintile rate ratio
New inpatient consults2.36
Inpatient visits2.13
ICU days1.55
Inpatient days1.52

Fisher et al., Regional Variations in Medicare Spending, Annals of Internal Medicine · 2003 · source

But no better survival

Mortality relative risk for each 10 percent increase in regional spending. Every cohort sits at or just above 1.0, meaning more spending bought no survival benefit. Exact values and confidence intervals are in the table.

Read it this way Every cohort's relative risk sits at or barely above 1.0, from 1.003 for hip fracture to 1.012 for colorectal cancer, meaning a 10 percent spending increase bought no measurable survival benefit in any group studied. The general-population confidence interval of 0.99 to 1.03 crosses 1.0, so that estimate alone cannot rule out a true effect of zero. Use this chart to distinguish more care from better care, and to see why the recommendation targets high-intensity, low-benefit utilization rather than across-the-board cuts.

Caveat Values cluster at 1.0 by the design of the finding. The exact relative risks and 95 percent confidence intervals are in the table below.

0.0 0.5 1.0 1.5 2.0 Colorectal cancer 1.012 1.0 General population 1.010 1.0 Acute myocardial infarction 1.007 1.0 Hip fracture 1.003 1.0 No effect
⊞ data table⬇ CSV
Patient cohortMortality relative risk per 10% more spending95% CI
Colorectal cancer1.0121.004 to 1.019
General population (MCBS)1.010.99 to 1.03
Acute myocardial infarction1.0071.001 to 1.014
Hip fracture1.0030.999 to 1.006

Fisher et al., Regional Variations in Medicare Spending, Annals of Internal Medicine · 2003 · source

Why this matters

The two largest waste categories, administrative complexity at 265.6 billion dollars and pricing failure at up to 240.5 billion, sit outside clinical decision-making entirely, in billing, contracting, and price-setting, so efforts aimed only at reducing unnecessary tests and procedures target a bucket less than half the combined size of those two. At the same time, guideline-discordant services remain routinely delivered, more than half of Medicare cataract patients still receive pre-op testing the guidelines advise against, showing the narrower clinical-overtreatment bucket still has real room to shrink through guideline adherence.

Recommended actions

  • Direct primary reform attention at administrative complexity and pricing failure, the two largest waste categories, rather than treating clinical overtreatment as the main lever.
  • Pilot Choosing Wisely style guideline-adherence programs targeting the four documented low-value services, starting with cataract pre-op testing at 53.0 percent delivery, the highest of the four.
  • Monitor regional care-intensity ratios from the Dartmouth Atlas as a proxy for recoverable overtreatment, since high-intensity regions show no survival benefit over low-intensity ones.
  • Treat the 760 billion to 935 billion dollar total as a directional order-of-magnitude estimate, not a precise figure, since three independent studies over a decade used different methods and produced a wide range.
  • Measure against the 191 billion to 286 billion dollar recoverable-savings estimate rather than the full waste total when setting a policy target, since not all identified waste is recoverable in practice.

The recommendation

Therefore, treat low-value care reduction as a clinical-quality and capacity-release program. The recommended approach is to identify high-intensity practice patterns, align payment with demonstrated benefit, and reinvest avoided waste into services that improve access, prevention, and outcomes.

Demographic slice none. Choosing Wisely / waste studies report national or setting-level rates.

Sources