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Source: In Touch Vol. 12, No. 9 September 2008 ISSN 1525-416X

U.S. Medical Errors Cost Employers $1.5 Billion Yearly

The July 28, 2008 issue of the journal Health Services Research highlights a study released by the U.S. Agency for Healthcare Research and Quality. It found that medical errors during or after surgery cost employer-based health plans nearly $1.5 billion each year.

The study used data on more than 161,000 patients in employer-based health plans who underwent surgery between 2001 and 2002.

Some of the conclusions:

The effects of medical errors continue long after the patient leaves the hospital. Studies that focus only on medical errors that occur while a patient is in the hospital underestimate the costs by up to 30 percent.

One in every 10 patients who died within 90 days of surgery died because of a preventable error and one-third of the deaths occurred after the patient left the hospital.

Patients developing acute respiratory failure after surgery added $28,218 (52 percent more) to the insurer’s costs.

Additional nursing care associated with medical errors cost an additional $12,196 (33 percent more).

An infection added $19,480 (48 percent more) to the bill.

AHRQ Director Carolyn Clancy said, “Like the physical and emotional harm caused by medical errors, the financial consequences don’t stop at the hospital door. Eliminating medical errors and their after effects must continue to be top priority for our health care system.”