Waste in healthcare is the new normal in the healthcare industry. Healthcare experts say the industry wastes $765 billion every year. That’s 25 percent of the yearly healthcare expenditures. More than $210 billion of that total is for unnecessary and expensive healthcare procedures, according to a National Academy of Medicine report. In fact, healthcare waste is an innate part of the system. Hospitals don’t use new supplies. They throw them away. Nursing homes throw away medications that are reusable. And drug makers use cheap pharma ingredients to make expensive and special drugs. Plus, arbitrary expiration dates on drugs force pharmacies and hospitals to throw valuable drugs away.
But any conversation about waste must include a conversation about antiquated medical record keeping, according to Drew Madden. Drew Madden is a healthcare entrepreneur who specializes in setting up and helping healthcare provides put an effective electronic medical records platform together.
Madden is no stranger to the flaws in the healthcare system. He cut his healthcare teeth working for companies like Ingenix, a division of United Healthcare, and Cerner, one of the top healthcare information technology solution companies in the industry. When Madden took the Nordic job, Nordic went from a $1 million company to a $130 million company while Madden was president. He is currently one of the managing partners of Evergreen Healthcare. Evergreen specializes in implementing electronic medical records systems that give healthcare providers a better idea of consumer needs in terms of treatment, prescriptions and other pertinent healthcare information.
The news that CVS may buy Aetna Insurance Company and Amazon may get into the healthcare equipment business is creating a stir in the industry. Amazon executives may also get into the retail prescription drug business. Some waste may go away when Amazon shines a light on a few areas where healthcare is hurting patients more than helping. Drew Madden and his partners know any change in the healthcare industry creates more opportunities for them.