A Different Way

to look at Life, Health, Business and Politics

The “next” bailout will be the healthcare (?) industry

Posted by Marietta chiropractor on October 1, 2008

Given the current hysteria over the Government “bailout” of the financial industry, we tend to lose sight of other potential problems on the horizon.  Now that the Government has injected itself into “saving” whole industries, we should not be surprised when traditional healthcare systems in this country start clamoring for the government to bail them out, as well.

The following article indicates that one estimate is that problems caused by hospitals (not related to the reason for being in the hospital) accounts for over 12% of total legal liability costs of healthcare facilities in 2007.  As you know, hospitals bill your insurance company for these so-called “never events” AND GET PAID!

As other insurance carriers follow Medicare’s lead and refuse to pay for these “never events”, I think you’ll see these facilities and even the AMA and other groups calling for the Government to intervene.

How did we EVER get to the point where we PAID for doctors and hospitals to screw people up and NOT pay to get and keep them well?

Here’s the article:

Study: Never events major factor in hospital liability costs

According to new research by insurance firm Aon Corp., hospital-acquired conditions accounted for 12.2 percent of total legal liability costs insured by healthcare facilities in 2007. It is perhaps the first study to benchmark claims specific to “never events” affected by Medicare’s new policy of not paying for hospital-acquired conditions. (All four of the never events reviewed by Aon are covered by Medicare’s new policy.)

According to the study, one out of six claims against healthcare facilities were related to hospital-acquired infections, injuries, pressure ulcers and foreign objects left in the body after survey in 2007, according to the company’s 2008 Hospital Professional Liability and Physician Liability Benchmark Analysis. Of these, claims for injuries were most frequently reported of four hospital-acquired condition categories. Pressure ulcers were the most expensive for healthcare facilities, which cost them about $145,000 on average for claims per incident in 2007, Aon concluded.

To draw its conclusions, Aon analyzed almost 78,000 claims, relating to a total of $9.3 billion in incurred losses. The data included information from more than 1,200 facilities from 1998 to 2007.

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