How Advanced Analytics is Reducing Clinical Waste in Healthcare
As U.S. healthcare spending surges—reaching $4.9 trillion in 2023, a 7.5% increase from the previous year—health systems are seeking innovative ways to curb unnecessary costs. One key area of focus? Clinical waste—avoidable medical services that drive up expenses without improving patient outcomes. MultiCare Health System, a 13-hospital network based in Washington, has successfully tackled this challenge using AI-powered clinical decision support (CDS) tools. Partnering with health tech company IllumiCare, MultiCare has reduced unnecessary lab tests and medication orders, saving $2.5 million while maintaining care quality. What is Clinical Waste? Clinical waste refers to unnecessary medical services—such as redundant lab tests, excessive imaging, or inappropriate prescriptions—that inflate costs without benefiting patients. Studies show: Dr. Arun T. Mathews, MultiCare’s Regional Chief Medical Officer, explains: “A patient doesn’t always need a daily blood draw. The extra data may not help—and could even harm them.” How MultiCare is Cutting Waste with AI MultiCare deployed IllumiCare’s Smart Ribbon, an EHR-integrated CDS tool that: Key Features: ✔ Passive vs. Active Alerts – Clinicians receive contextual nudges (e.g., switching from IV to oral meds when appropriate).✔ Automated Order Adjustments – If a doctor accepts a recommendation, the system updates the order automatically, reducing cognitive load.✔ Shared Savings Incentives – Physicians earn performance bonuses for adopting cost-effective practices. Overcoming Adoption Challenges Initially, clinicians ignored alerts, seeing them as extra work. MultiCare’s solution? Result: The Bigger Picture While cost savings matter, patient care remains the priority. As Dr. Mathews notes: “The real win? Fewer unnecessary needle sticks, faster IV-to-oral transitions, and a better patient experience.” What’s Next? MultiCare plans to expand the tool systemwide, proving that smart analytics + clinician engagement can reduce waste without sacrificing care quality. Advanced analytics in healthcare leverages data to identify and address inefficiencies, ultimately reducing clinical waste by optimizing resource allocation, streamlining operations, and improving patient care, leading to cost savings and better outcomes. Key Takeaway:By combining AI-driven insights with physician incentives, health systems can cut waste, lower costs, and keep patient care at the forefront. Like Related Posts Salesforce OEM AppExchange Expanding its reach beyond CRM, Salesforce.com has launched a new service called AppExchange OEM Edition, aimed at non-CRM service providers. Read more The Salesforce Story In Marc Benioff’s own words How did salesforce.com grow from a start up in a rented apartment into the world’s Read more Salesforce Jigsaw Salesforce.com, a prominent figure in cloud computing, has finalized a deal to acquire Jigsaw, a wiki-style business contact database, for Read more Service Cloud with AI-Driven Intelligence Salesforce Enhances Service Cloud with AI-Driven Intelligence Engine Data science and analytics are rapidly becoming standard features in enterprise applications, Read more