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

stetho-snopes image
Stetho-Snopes: Time for Some Rigorous Myth-Busting in Healthcare?
India’s Secret to Low-Cost Health Care
Improving Patient Satisfaction: What’s Holding Doctors Back?
Preventive Medicine, Home Health & ACOs
The Real Cost of Specialty Pharmacy

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

medical emergency
A Clear Guide To Medical Emergency Decision Making
Health Infographics
May 23, 2026
germs issues in schools
The Most Common Germ Hotspots In Schools
Health Infographics
May 23, 2026
healthy child development
A Practical Checklist For Supporting Healthy Child Development
Health Infographics
May 23, 2026
urban healthcare clinics challenges
Why Front Desk Delays Continue To Challenge Urban Healthcare Clinics
Health Infographics
May 23, 2026

You Might also Like

Year in Review 2013: Evidence and Market Access

January 1, 2014
Global HealthcareHealth careHealth ReformHospital AdministrationMedical EducationMedical EthicsMedical RecordsNewsPolicy & LawPublic HealthUncategorized

8 Of The Most Bizarre Medical Malpractice Cases Out There

December 11, 2018
open enrollment
BusinessFinanceHealth ReformPublic Health

The Return of Open Enrollment

November 1, 2014
group appointments
Health ReformHospital AdministrationPolicy & Law

Seeing Patients by the Dozen: Group Appointments Are Increasing

October 21, 2013
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?