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
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    benefits of using protein powder to build muscles
    Protein Powder for Muscle Mass: Everything You Need to Know
    December 12, 2021
    changes brought on by blockchain in healthcare
    Technology In The Healthcare Industry
    March 28, 2022
    What Does Core Body Temperature Say About Health?
    August 17, 2022
    Latest News
    7 Most Common Healthcare Accreditation Programs: Which Should You Use?
    August 20, 2025
    Hospital Pest Control and the Fight Against Superbugs
    August 20, 2025
    Hygiene Beyond The Clinic: Attention To Overlooked Non-Clinical Spaces
    August 13, 2025
    5 Steps to a Promising Career as a Healthcare Administrator
    August 3, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    Do Electronic Health Records Reduce Malpractice Claims?
    February 2, 2013
    A Humble Opinion: Book Review
    May 3, 2015
    medicaid
    Paul Krugman: Stop Being an Embarrassment to the Profession
    March 7, 2013
    Latest News
    How Social Security Disability Shapes Access to Care and Everyday Health
    August 22, 2025
    How a DUI Lawyer Can Help When Your Future Health Feels Uncertain
    August 22, 2025
    How One Fall Can Lead to a Long Road of Medical Complications
    August 22, 2025
    How IT and Marketing Teams Can Collaborate to Protect Patient Trust
    July 17, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Medical Errors Earn Hospitals Money: Who Knew?
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 > Medical Errors Earn Hospitals Money: Who Knew?
BusinessFinanceHospital AdministrationPolicy & Law

Medical Errors Earn Hospitals Money: Who Knew?

Michael Kirsch
Michael Kirsch
Share
5 Min Read
medical errors
SHARE

Though I have been accused by various commenters as protecting my own specialty when I point out excesses, flaws and conflicts of interest in the medical profession, this accusation would be handily dismantled after a fair reading of prior posts.  Indeed, my own specialty of gastroenterology and my own medical practice has felt the effects of the honed Whistleblower scalpel.

Though I have been accused by various commenters as protecting my own specialty when I point out excesses, flaws and conflicts of interest in the medical profession, this accusation would be handily dismantled after a fair reading of prior posts.  Indeed, my own specialty of gastroenterology and my own medical practice has felt the effects of the honed Whistleblower scalpel. If an individual or an institution will not willingly engage in self-criticism, then it creates a credibility gap that may be impossible to bridge.  If you want a seat at the table, then arrive exposed and humble.

 
medical errors
My Preferred Instruments
 
A study was published in the prestigious medical journal JAMA, the Journal of the American Medical Association, in April 2013 publishing what we have known for decades: hospitals make more money when medical errors are committed.   As an aside, I have much more respect for JAMA than I do for the AMA, but I’ll resist the strong temptation to digress.
 
Here’s how it has worked in the past.  If a patient is hospitalized with an inflamed gallbladder and is discharged a day later after surgery, the hospital would be reimbursed according to a specific fee schedule.   (Payment systems for hospitalized patients are more complex than this, but accept the above example for the moment.)  If this same patient undergoes complications after surgical removal of the gallbladder, the hospital would be paid more.   If an infection at the incision site, or the patient develops a reaction to medication that may lead to more testing, then the hospital bill will understandably increase.  The issue is if hospitals or physicians should be able to charge more for extra care that was preventable.
  
There is an inexorable movement away from fee-for-service medicine which antagonists argue lead directly to excessive care.  Value based care is the new concept where quality, not quantity, will be measured and reimbursed.  There is a growing Never Events list where certain medical complications that are designated as events that should never happen, will never be reimbursed.  While this concept sounds attractive in a sound bite, my view on Never Events is more nuanced.
 
The argument to withhold payment for care that resulted from medical error is potent.  Keep in mind that defining a medical error is not as easy as it sounds.  One can easily imagine how easy it would be too confuse a medical complication, which is a blameless event, from an error or a negligent act.  If I perform a colonoscopy and a perforation develops as a complication, should the hospital and surgeon I consult not be paid for the additional care that would be required?
 
Would every profession consent to returning fees for mistaken advice or service?  Do you agree with the following?
  • Financial advisors should return fees if investment performance is below a designated threshold or differs from their peers.
  • Attorneys who have been found on appeal to have offered ineffective legal arguments at trial, should surrender their fees.
  • A professional baseball player who drops a fly ball should lose a day’s pay.
  • A newspaper publisher should offer a rebate to all readers if a news story is found to be inaccurate owing to a lack of proper editorial oversight. 
I realize that medical mistakes cost money, as do some of the hypothetical examples above.  I also accept that financial incentives can change behavior and can be an effective tool.  But every human endeavor has a finite error rate and we should be cautious before using a financial drone attack against only the medical profession.  Let’s use a scalpel here and not a sledge hammer.  And those of you outside of medicine, explain why your occupation should be spared from this reform strategy?
 
If to err is human, and doctors are human, then should we punished for our humanity?
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

engineer fitting prosthetic arm
How Social Security Disability Shapes Access to Care and Everyday Health
Health care
August 20, 2025
a woman explaining the document
How a DUI Lawyer Can Help When Your Future Health Feels Uncertain
Public Health
August 20, 2025
physiotherapist at work
How One Fall Can Lead to a Long Road of Medical Complications
Health care
August 20, 2025
Common Healthcare Accreditation Programs
7 Most Common Healthcare Accreditation Programs: Which Should You Use?
Health News
August 20, 2025

You Might also Like

Mobile Health Around the Globe (Bonus Post!): Six mHealth Companies Bringing Health Technology to Developing Countries

August 19, 2013

Sorry, Captain, There’s No Transparency in Medical Pricing

June 2, 2015
Surgical Errors
Policy & LawSurgery

Doctor Or Hospital: Determining Liability In Surgical Errors

January 25, 2022
Health careWellness

5 Ways Functional Medicine Is Transforming Healthcare

April 7, 2020
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?