Abstract
This study estimates that Medicare extra payments under the hospital prospective payment system (PPS) range from about $700 per case of decubitus ulcer to $9,000 per case of postoperative sepsis in the five types of adverse events identifiable in Medicare claims. Medicare extra payment for the five types of events totals more than $300 million per year, accounting for 0.27 percent of annual Medicare hospital spending. But these extra payments cover less than a third of the extra costs incurred by hospitals in treating these adverse events. We conclude that both Medicare and hospitals gain financially by improving patient safety.
Original language | English (US) |
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Pages (from-to) | 1386-1393 |
Number of pages | 8 |
Journal | Health Affairs |
Volume | 25 |
Issue number | 5 |
DOIs | |
State | Published - 2006 |
Externally published | Yes |
ASJC Scopus subject areas
- Health Policy