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

Online Bill Pay Starts to Accelerate in Healthcare
Medicare Advantage Cuts Don’t Bite: Health Insurers’ Stocks Rally
Keep it Simple Stupid: But Not With Medicare
High Quality, Low Cost HealthCare Video Interview Series: Dan Munro Talks Value in HealthCare
Hospital Revenues from Primary Care: Recruiting Firm Notes “Seismic Shift”

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

Redefining Romance: How Care and Presence Are Showing as Big Gestures
lifestyle
January 9, 2026
dental check up
What to Expect From Your First Visit to a Dentist
Dental health
January 9, 2026
foot and vein health
The Hidden Connection Between Foot and Vascular Health
Health
January 8, 2026
CRM Software for healthcare
A Beginner’s Guide to Medical CRM Software for Clinics, Medspas, and Telehealth
Global Healthcare Technology
December 29, 2025

You Might also Like

open enrollment
BusinessFinanceHealth ReformPublic Health

The Return of Open Enrollment

November 1, 2014

High Quality, Low Cost HealthCare Video Interview Series: Dr Ricardo Bello Talks Reducing Readmissions @MontefioreNYC

April 2, 2013

Romney on ’60 Minutes’: ED Care Appropriate as Safety Net

September 25, 2012
obamacare
Health ReformPolicy & LawPublic Health

Tell Us Again Why We Need Young People

September 27, 2013
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Go to mobile version
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?