Whitepaper

Increased spending on low-value care during the COVID-19 pandemic in Virginia

By Michelle Rockwell, Sitaram Vangala, Jillian Capucao, Beth Bortz, Kyle Russell, Marcos Dachary, Lauryn Walker, A. Mark Fendrick, and John N. Mafi

The U.S. spends more money on healthcare than other countries without commensurate improvement in health outcomes. Part of this wasteful spending is attributed to low-value care, services for clinical scenarios that lack evidence and therefore do not benefit health, raise costs, and sometimes cause patient harm. Examples are cardiovascular screening tests for asymptomatic low-risk patients and routine laboratory testing (e.g., bloodwork) prior to low-risk surgery.

It is unclear how low-value care changed during the COVID-19 pandemic. Some experts were optimistic that healthcare providers would adapt to selectively reduce low-value care while prioritizing appropriate care during the challenging pandemic period. Our team studied insurance claims from 2 million Virginians to improve understanding of the value of care provided during the pandemic.

We identified $2 billion in spending for 11 low-value services in Virginia in 2019-2021. Unfortunately, low-value care rebounded to 7% higher than pre-pandemic utilization rates during 2021. While it is encouraging that Virginians with the greatest socioeconomic deprivation experienced 15% less low-value care than pre-pandemic, they also received 16% less appropriate care, suggesting potential widening of healthcare disparities. These results underscore the need for policy-level efforts to address the complex drivers of low-value care and redistribute expenditures to services that enhance health.