The Economics of Health Care Quality and Medical Errors

Article from Journal of Health Care Finance, Vol. 39, No. 1, Fall 2012, published by Wolters Kluwer Law & Business   Charles Andel, Stephen L. Davidow, Mark Hollander, and David A. Moreno |  Hospitals have been looking for ways to improve quality and operational efficiency and cut costs for nearly three decades, using a variety of quality improvement strategies. However, based on recent reports, approximately 200,000 Americans die from preventable medical errors including facility-acquired conditions and millions may experience errors. In 2008, medical errors cost the United States $19.5 billion. About 87 percent or $17 billion were directly associated with additional medical cost, including: ancillary services, prescription drug services, and inpatient and outpatient care, according to a study sponsored by the Society for Actuaries and conducted by Milliman in 2010.  Read more