Center for US Healthcare Improvement
Actionable insights for improving US healthcare
Research focus areas
Macro US healthcare trends
Since the early 2010s, US healthcare spending growth has slowed, though COVID-19 has introduced disruptions to the trend. Recently, high inflation rates and labor shortages characterized the economic environment, raising questions about what the forward-looking trajectory will be in the coming years. Our research focuses on examining how underlying micro factors are trending and the implications on overall healthcare spending.
Administrative spending
Administrative spending represents about $1 trillion, or 25 percent, of total US healthcare spending. Of these, five functional focus areas represent 94 percent of this spending and there are over 30 known interventions that could save up to $265 billion annually. Our research focuses on scaling these known interventions to eliminate excess administrative spending without affecting quality and access for patients.
Technology adoption
Venture-capital and private-equity funding of healthcare solutions has increased greatly in the last decade, with technology and AI being one of the largest investment areas. Our research quantifies and identifies adoption challenges to scale these technologies, such as the up to $360 billion net savings opportunity enabled by AI.
Capital productivity
Today, over $2 trillion has been invested in infrastructure, such as buildings and furniture, in the US healthcare system, but little focus is given to the healthcare system’s balance sheet. Our research quantifies the capital productivity benefits of interventions such as alternative sites of care.
Executive Briefing
The productivity imperative for healthcare delivery in the United States
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Healthcare is a key component of the US economy, but healthcare spending increases consistently outstrip GDP growth. Improving productivity in healthcare delivery could change this dynamic without harming patient care.
Article
The math of ACOs
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Several factors will shape the financial performance of physician- and hospital-led organizations under total cost of care payment models.
Collection
The gathering storm in US healthcare
The headwinds facing the healthcare sector in the United States are threatening affordability, access, and industry economics. But behind the dark clouds lies a silver lining of opportunity and innovation.
Article
What to expect in US healthcare in 2024 and beyond
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A new perspective on how technology, transformation efforts, and other changes have affected payers, health systems, healthcare services and technology, and pharmacy services.
Executive Briefing
Administrative simplification: How to save a quarter-trillion dollars in US healthcare
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About thirty known interventions could deliver up to $265 billion in annual savings for US healthcare.
External Article
Article
Next-generation payer operations: How to prioritize for success
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A journey-based view for payer operations allows insight into how different functions contribute to strategic value.
External Article
Article
Private equity opportunities in healthcare tech
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Although private equity firms have been hesitant to invest in healthcare tech, they have reason to invest in promising targets now.
External Article
External Article
Collection
The Next Normal – The future of hospital care: A better patient experience
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Around the world, populations are getting older, and their health needs are becoming more complex. At the same time, technological advances are changing healthcare delivery. In this edition, The Next Normal explores how hospitals will innovate in the coming decade—and what it will mean for both patients and healthcare professionals.
Article
From facility to home: How healthcare could shift by 2025
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Up to $265 billion worth of care services for Medicare fee-for-service and Medicare Advantage beneficiaries could shift to the home by 2025.
Article
The next frontier of care delivery in healthcare
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McKinsey explores the latest evolution in healthcare and key changes facing US organizations around care delivery.
Article
Virtual hospitals could offer respite to overwhelmed health systems
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A shift to more-accessible, cost-effective virtual-care models could mitigate increases in healthcare service demand, expenditures, and patient dissatisfaction.
Meet our experts
Nikhil R. Sahni
Leader of Center for US Healthcare Improvement; fellow in Department of Economics at Harvard University; focus on productivity challenges across the healthcare value chain.
David G. Knott
Serves national and regional payers, health systems, state Medicaid programs, and large employers drawing on 30 years of experience.
Dr. Edward Levine
Physician by training; serves multiple national and regional hospital networks on frontline operations transformations.
Heather Bello Thornhill
Chief of staff of Center for US Healthcare Improvement, drawing on decades of experience developing/operating healthcare products and services.