Wednesday, April 24, 2013

Do Hospitals Profit From Negligence?

According to a study published in the Journal of the American Medical Association, some hospitals make money due to surgical errors resulting in complications. Does this mean that hospitals may have an incentive to delay or refrain from implementing better safety standard controls?  I guess one would have to read the report.

According to the report's conclusions:
In this hospital system, the occurrence of postsurgical complications was associated with higher per-encounter hospital contribution margin for patients covered by Medicare and private insurance but lower contribution margin for patients covered by Medicaid and self-payment. Depending on payer mix, some hospitals have the potential for adverse near-term financial consequences for decreasing postsurgical complications.

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