MedInsight Waste Calculator


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The MedInsight Waste Calculator is an analytical tool that provides actionable data to support healthcare quality, efficiency, and effectiveness reporting. The calculator brings together clinical expertise and powerful data analytics—allowing healthcare managers to target and reduce wasteful spending.

Eliminating inefficient and unnecessary medical services improves overall healthcare efficiency while reducing costs, and the MedInsight 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 (iom.edu/bestcare).

A focus on reducing unnecessary care

Reports from the MedInsight 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 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 within a data warehouse or runs 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 are developed by Milliman healthcare experts and our partners at VBID Health, Mike Chernew, Mark Fendrick, MD, and Katy Spangler. The MedInsight Waste Calculator measures are constantly refined to provide the most innovative and up-to-date healthcare analytics.

By identifying waste, clients of the MedInsight 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.

To learn more about our clinical partners, visit vbidhealth.com.

Next Steps

For more information, contact: