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

Mass. Study – Insurance Costs Still Too High
Patients’ Health Data Rights and Precision Medicine
ICD-10 Top Ten Resources: The Best Resources in One Place
The Paradox in American Healthcare
Will Work for Dental Care: Not a Bad Idea

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

Career Mobility in the Modern Nursing
The Growing Importance of Career Mobility in the Modern Nursing Workforce
Career Nursing
January 18, 2026
advancement in nursing career
How Nursing Leadership Shapes Organizational Culture and Patient Outcomes
Global Healthcare Nursing
January 18, 2026
woman in pink long sleeve shirt sitting on gray couch
Understanding Divorce Law and the Role of Attorneys in Family Disputes
Policy & Law
January 14, 2026
Redefining Romance: How Care and Presence Are Showing as Big Gestures
lifestyle
January 9, 2026

You Might also Like

5 Reasons Latinos Could Be The Most Powerful Transformation Of The U.S. Health System

August 5, 2015

The Real Cost of Specialty Pharmacy

March 27, 2015
health_collective_ACA
BusinessFinanceHealth ReformPolicy & Law

Actuarial Study Results a Mixed Bag on Costs of Claims under ACA

March 28, 2013
obamacare
Health ReformNewsPolicy & Law

Ted Cruz Filibuster Misses the Mark

October 15, 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?