Why Finacial Managers Should Be Concerned with Quality Initiatives in Healthcare Organizations

In: Business and Management

Submitted By nnamdiojuro
Words 6247
Pages 25
The Economics of Health Care Quality and Medical
Errors
Charles Andel, Stephen L. Davidow, Mark Hollander, and David A. Moreno
Charles Andel, MBA, BSRT, is Manager of Radiology Quality and Compliance at Loyola
University Medical Center and a graduate of Loyola University Chicago’s Quinlan School of
Business MBA in Healthcare Management program. He may be reached at cjandel@lumc.edu.
Stephen L. Davidow, MBA, APR, is a health care marketing and communications professional with a strong focus on quality and patient safety. He is a graduate of Loyola University
Chicago’s Quinlan School of Business MBA in Healthcare Management program. He may be reached at stephen@davidowcommunciations.com or 708-284-2300.
Mark Hollander, MBA, is a financial manager at the Department of Veterans Affairs and graduate of Loyola University Chicago ’s Quinlan School of Business MBA in Healthcare
Management program.
David A. Moreno, MBA, is a biotechnology business analyst and graduate of the Loyola
University Chicago’s Quinlan School of Business MBA in Healthcare Management program. He may be reached at dmoreno1@gmail.com.
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.
Additional costs of $1.4 billion were attributed to increased mortality…...

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