By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Leapfrog Exposes High Cost of Hospital Rework
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Finance > Leapfrog Exposes High Cost of Hospital Rework
FinanceHealth Reform

Leapfrog Exposes High Cost of Hospital Rework

DavidEWilliams
DavidEWilliams
Share
2 Min Read
Image
SHARE

The Leapfrog Group is riling up hospitals with a hidden surcharge calculator designed to show employers how much of their health care premium is devoted to  paying for medical errors at the hospitals where their employees obtain care.

The Leapfrog Group is riling up hospitals with a hidden surcharge calculator designed to show employers how much of their health care premium is devoted to  paying for medical errors at the hospitals where their employees obtain care. The principle behind the calculator is that hospitals bury the costs of errors in their overall rates and that employers should at least understand what they’re paying for.Image

Of course hospitals aren’t happy about the calculator. And to help blunt the impact of the Leapfrog initiatives, The American Hospital Association has come out with a list of methodological criticisms. That’s fair enough. Of course the Leapfrog data –like any in health care– won’t be perfect. But I hope this initiative leads to a broader discussion.

Last year I compared hospitals with factories. When a hospital makes a mistake and turns out a poor quality product that product generally has to be reworked before it’s sold, which adds cost. When it is sold, it’s sold for market price. And if the product can’t be reworked it gets scrapped and not sold. Factories whose processes are poor become uncompetitive and close down. In contrast, if a hospital makes a mistake it can often charge for the cost of the rework. Hospitals with poor processes can make as much or more money as those with high quality processes, at least in today’s world.

More Read

Marketing to Physicians? Think Education and Email
Employers as Doctors
Another Reason Why Accurate Comparison of Health System Costs in Different Countries Is Difficult
Is Medicare A Good Deal?
Community Health Centers and Healthcare Systems Partnering for Healthcare of the Future

There are caveats to this analogy, but the basic idea is sound.

Congratulations to Leapfrog for putting this tool out there.

 image: hospitalcosts/shutterstock

 

—————–

By David E. Williams of the Health Business Group.

TAGGED:healthcare costs
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5KFollowersLike
4.5KFollowersFollow
2.8KFollowersPin
136KSubscribersSubscribe

Latest News

Advances in Diagnostic Tools for Early Detection of Dementia -- AI-generated illustration
Advances in Diagnostic Tools for Early Detection of Dementia
Diagnostics
August 1, 2026
How Virtual Schools Deliver Therapy and Special-Education Support for Children With Disabilities -- AI-generated illustration
How Virtual Schools Deliver Therapy and Special-Education Support for Children With Disabilities
Health News Therapy
July 31, 2026
mri technology
Why Preventive MRI Maintenance Is Essential for Hospitals
Business Hospital Administration
July 24, 2026
senior on computer
Health and Digital Safety Risks Older Adults Should Know
Senior Care
July 24, 2026

You Might also Like

BusinessPublic HealthWellness

Maintaining A Healthy And Safe Office Environment

October 31, 2018
1
BusinessFinanceGlobal HealthcareHealth ReformHospital AdministrationMobile HealthPolicy & Law

6 Benefits of Becoming Accredited

September 9, 2015

Are We Treating Symptoms While Ignoring the Cause?

June 4, 2015

Plan B’s Balancing Act

May 2, 2013
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2026 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?