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

health reform and employment
ObamaCare and Jobs
Medical Advancement: 6 Things to Know About Your Body
Startup Founder Reacquires His Patient Portal Business
Facility Fees For Office Visits: What is the Role of Health Plans?
Medical Advances Aid Fight Against Pollution-Caused Skin Conditions

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

addiction recovery
How Detox Helps Your Body Heal from Substance Abuse
Addiction Recovery Wellness
December 9, 2025
container of collagen powder near white flowers and green leaves
Pal-GHK: A Messenger Peptide in Cellular Activity
Health
December 9, 2025
man looking through a microscope
The Most Popular Types of Health Supplements for Anti-Ageing
Health
December 9, 2025
new talent in nursing
The Fast-Track Paths Bringing New Talent Into the Nursing Workforce
Career Nursing
November 30, 2025

You Might also Like

BusinessMedical EthicsPublic Health

Money, Medicine and Ethics

January 9, 2012
healthcare reform, medical device marketing, ACA, Affordable Care Act, online marketing
BusinessHealth ReformMedical DevicesPolicy & LawTechnology

Benefit from ACA Boost to the Consumer Medical Device Market

January 21, 2014

True Value Telehealth

December 13, 2013
pay per click advertising
BusinessFinance

Wallet Burn and the Nasty Side of Pay-per-Click Advertising

April 25, 2015
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?