A significant source of wasteful healthcare spending is unnecessary diagnostic testing, including repeated MRIs, CT scans, and lab tests that provide little or no benefit to patient care. Research estimates that up to 30% of total U.S. healthcare spending is wasteful, with diagnostic testing being a major contributor (Mafi et al., 2017).

Why It’s Wasteful
Excessive Costs with No Improved Outcomes – MRIs cost between $500 and $3,000 per scan, but studies show they often do not influence treatment decisions or improve patient outcomes (Chou, Qaseem, Owens, & Shekelle, 2011).
Overdiagnosis and Overtreatment – Unnecessary tests increase the chances of false positives, leading to more testing, patient anxiety, and aggressive treatment.
Resource Strain – Overuse of diagnostic tests delays access for patients who need them and increases overall healthcare costs.
Impact of Stopping Needless Testing
Reducing unnecessary diagnostic testing could save the U.S. healthcare system an estimated $210 billion annually (Institute of Medicine, 2012). Lower costs and improved resource allocation would benefit patients and providers. However, careful implementation is necessary to avoid underdiagnosis. Shifting toward evidence-based guidelines and reducing defensive medicine practices would help minimize this issue.

References
Chou, R., Qaseem, A., Owens, D. K., & Shekelle, P. (2011). Diagnostic imaging for low back pain. Annals of Internal Medicine, 154(3), 181-189. https://doi.org/10.7326/0003-4819-154-3-201102010-00008Links to an external site.

Institute of Medicine. (2012). Best care at lower cost: The path to continuously learning health care in America. The National Academies Press. https://doi.org/10.17226/13444