Are hospital errors a good business model? Study shows that hospitals profit from their errors says the NY Times.

Are hospital errors a good business model? Study shows that hospitals profit from their errors says the NY Times.

A new study shows that errors that occur in the hospital which require additional length of stay are quite profitable. After Stephen Brills article in Time Magazine, you need to wonder about hospitals and this new study does add fuel to the fire. Apparently, when errors occur within hospitals, it is indeed another profit center for them as they bill you and your insurer. Statistics show that many of the deaths in this country occur in this country. Perhaps this is one more reason to opt for the shortest hospital stay.

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Hospitals Profit From Surgical Errors, Study Finds

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Published: April 16, 2013

Hospitals make money from their own mistakes because insurers pay them for the longer stays and extra care that patients need to treat surgical complications that could have been prevented, a new study finds.

Changing the payment system, to stop rewarding poor care, may help to bring down surgical complication rates, the researchers say. If the system does not change, hospitals have little incentive to improve: in fact, some will wind up losing money if they take better care of patients.

The study and an editorial were published Tuesday in The Journal of the American Medical Association. The study authors are from the Boston Consulting Group, Harvard’s schools of medicine and public health, and Texas Health Resources, a large nonprofit hospital system.

The study is based on a detailed analysis of the records of 34,256 people who had surgery in 2010 at one of 12 hospitals run by Texas Health Resources. Of those patients, 1,820 had one or more complications that could have been prevented, like blood clots, pneumonia or infected incisions.

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