Calculator Estimates Hidden Costs of Hospitals’ Medical Errors

The Leapfrog Group has created a tool to help employers and purchasers estimate the hidden costs of hospital errors.

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The complimentary Hidden Surcharge Calculator estimates annual unnecessary costs purchasers and employers pay due to hospitals’ medical errors. The tool incorporates The Leapfrog Group’s Hospital Safety Scores, which give hospitals letter grades of A, B, C, D or F based on outcomes data. For example, The Leapfrog Group estimates purchasers pay an average of $7,780 in hidden surcharges due to medical errors for a patient admitted to a hospital graded a “C” or worse.

The calculator is intended to encourage employees to choose “A” hospitals to reduce costs and protect patients. However, The Leapfrog Group notes that A-rated hospitals are not error-free. The calculator can also be used in contract negotiations with health plan providers and benefits consultants, according to the release.

An accompanying whitepaper explains in more detail how the calculator was created.

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