Introducing the Health Waste Calculator

VBID Health and Milliman MedInsight partnered to introduce the Health Waste Calculator, a stand-alone analytical tool that provides actionable data to support health care quality, efficiency, and effectiveness reporting. The calculator brings together clinical expertise and powerful data analytics—allowing health care managers to target and reduce wasteful spending. Eliminating inefficient and unnecessary medical services improves overall healthcare efficiency while reducing costs, and the Health Waste Calculator is effective at identifying potentially unnecessary care. The Congressional Budget Office has estimated that 30% of medical care in the U.S. is unnecessary care. In 2009, the Institute of Medicine (IOM) identified $750 billion of wasted spending, with unnecessary services accounting for $210 billion (

A focus on reducing unnecessary care

Reports from the MedInsight Health Waste Calculator output bolster comprehensive care analyses and further enable healthcare managers to confirm whether care appears appropriate, potentially wasteful, or very likely wasteful. These waste standards are not prescriptive—they provide a launch point for understanding opportunities for cost savings and improved patient care. The MedInsight Health Waste Calculator:
  • Adds value to existing publicly available cost and quality reporting efforts.
  • Denotes whether services were appropriate or potentially wasteful.
  • Indicates which services should be reviewed and flags potentially wasteful spending.
  • Operates in a data warehouse or on a desktop PC for a flexible, scalable solution.
  • Improves reporting for efficiency and effectiveness measurement.
  • Includes Milliman benchmarks.
In addition, Milliman and VBID health have established a research pipeline to continually investigate new wasteful services as we look to rapidly expand the range of wasteful services included in this product offering.

Superior standards for care evaluation

Our comprehensive measures were developed by VBID Health and Milliman healthcare experts. The MedInsight Health Waste Calculator measures are constantly refined to provide the most innovative and up-to-date healthcare analytics. By identifying waste, clients of the MedInsight Health Waste Calculator can access valuable information and quickly analyze the appropriateness of a course of medical care, using a more detailed and specific standard than public domain guidelines.
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