Which of the following is an example of Waste?

• A. Billing for services not medically necessary
• B. Providing routine care that matches evidence-based standards
• C. Falsifying documentation
• D. Incurring unnecessary costs due to deficient management practices

Answer: (D)

Waste means using resources in an unnecessary or inefficient way, often because of weak controls or poor processes, which leads to higher costs without improving care. The example describing incurring unnecessary costs due to deficient management practices fits this idea perfectly, since it points to systemic inefficiency that wastes resources.

Billing for services not medically necessary and falsifying documentation are classic examples of Fraud, where there’s intentional misrepresentation or manipulation to obtain payment. Providing routine care that aligns with evidence-based standards is appropriate care and does not involve waste.