The Problem : Adverse Events
Adverse events are a major problem for the healthcare industry. Hundreds of thousands of patients are killed each year and millions more suffer non-fatal injuries. Payers of healthcare (patients, employers, and health insurers) may be impacted by the additional cost required to treat adverse events.
Patients and Payers, not medical providers, bear the cost of Adverse Events.
“Approximately 78 percent of the costs of all injuries are externalized to other parties—primarily injured patients, their families, and their health insurers.” 6 6 Journal of Empirical Legal Studies, Volume 4, Issue 4, 835–860, December 2007: Who Pays for Medical Errors? Michelle M. Mello, David M. Studdert, et al.
“to the extent that there is a business case for safety in current markets, it exists primarily at the payer level, not the provider level.” 7 7 Journal of Empirical Legal Studies, Volume 4, Issue 4, 835–860, December 2007: Who Pays for Medical Errors? Michelle M. Mello, David M. Studdert, et al.
How Much Does Your Company Spend on Adverse Events?
Companies need to understand how much of their healthcare dollars are wasted on adverse events. The Leapfrog Group is a non-profit organization made up of large employers and other healthcare purchasers. Leapfrog’s mission is to educate employers about the impact medical complications have on healthcare spending. AMRC has partnered with Leapfrog to utilize its “Hidden Surcharge Calculator” to help self-funded employers calculate the costs of adverse events. The above chart represents the hidden costs paid by various sized employer groups. How much do adverse events cost your company?