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The Medical Error Problem – Do Employers Have Solutions?

Medical errors do not discriminate. In fact, preventable medical errors occur on an ‘equal-opportunity’ basis to patients, regardless of age, gender, race, political ideology and the type of medical plan you may (or may not) have. This means that employer-sponsored health plans are not exempt from medical mishaps and the associated costs that come with this problem.

Although the cost to employers can be massive – it is opaque and mostly hidden. Leah Binder, president of The Leapfrog Group, a national nonprofit organization whose mission is to address the quality, safety and affordability of American healthcare, has stated the cost associated with this unintended harm that silently creeps into the premiums that employers and employees pay – is a “hidden surcharge.”

This ‘surcharge’ not only includes additional costs to fix the medical problem resulting from the error, but the lost productivity of absenteeism and presenteeism – when employees lose time away from work and the emotional toll it takes when they do show up for work.

Simply put, employers own this problem, whether they know it or not. Relying on your insurance company or vendor to apply leverage on healthcare providers is most likely a delusional strategy in trying to improve this problem.

A 2013 Leapfrog Group white paper calculates that hospitals with a grade of “A” on their Hospital Safety Grade (hospitals who participate in Leapfrog surveys that rate patient safety efforts), will have a hidden surcharge for medical errors of $6,962, while a hospital with a grade of “C” or lower will command a hidden surcharge of $958 higher ($7,920 total). It is quite evident, especially when it comes to safety of medical care, not all hospitals are created equal. This is a fact that both patients and payers alike must acknowledge – and address.

Recently, Leapfrog announced that five states showed the most improvement over the five-year period since the Hospital Safety Grade’s inception. The states are Oregon, Rhode Island, Hawaii, Wisconsin and Idaho. Just as politics is considered to be local, so too is the healthcare that is delivered to patients. Though patient safety is a national problem, the solutions must begin locally, within each of our communities and within state borders. See how Iowa ranks in the most recent Leapfrog rankings.

With this in mind, what can Iowa employers do about patient safety issues? Actually, quite a bit.

What can Iowa Employers do about Patient Safety Issues?

Heartland Health Research Institute recently wrote a fact sheet, “What Employers Can Do About Medical Errors,” that addresses at least six approaches Iowa employers can consider taking to reduce the incidence of medical errors. The approaches include:

  1. Make insurance contracting decision-making process part of the medical error strategy.
  2. Develop a coalition with other like-minded employers and purchasers in your community.
  3. Meet with local hospital(s) and clinic(s) to convey the importance of safety and quality – require they demonstrate ‘cultures of safety’ within their respective organizations.
  4. Actively communicate the importance of safety issues to employees.
  5. Encourage employees to report medical errors when they occur.
  6. Visit with both state and federally-elected officials, trade association groups in which your organization participates, and other local commerce organizations.

It is tough sledding to make policy recommendations that would have a chance of becoming law. Instead, to disrupt healthcare into being delivered more safely, it really must begin with those who actually pay the healthcare bills – the employers and their employees, and yes, the taxpayers who ultimately fund Medicare and Medicaid and other state healthcare programs. In the past, this applied-pressure usually started (and ended) with only the largest of employers. But for this new movement to gain local traction, employers of all sizes and industries must embrace the approach that there is zero-tolerance for preventable medical errors.

Just remember, when we don’t demand safety in our healthcare, they don’t supply it. There’s no better time than now to begin taking action.

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New Survey: Nearly One-in-Five Iowa Patients Experience Medical Errors

Clive, Iowa – January 8, 2018 – Although a vast majority of Iowans have positive experiences with the healthcare system in Iowa, nearly one-in-five Iowa adults (18.8 percent) report having experienced a medical error either personally or with someone close to them where they were very familiar with the care that person received, during the past five years.

This finding comes from a new Iowa survey released today by Heartland Health Research Institute of Clive, Iowa. The first of its kind in Iowa, this statewide survey… (learn more).

Iowa Employer Benefits Study© – An Annual Tradition to take a 1-year Sabbatical

All of us have established traditions in our lives, whether it be family or friend-related holiday plans, vacation travels to a favorite destination, attending or watching sporting events, and so on. Yet, due to circumstances beyond our control, such as time constraints, finances, death and adverse health problems, traditions are made to be altered, or possibly discontinued. After performing the annual Iowa Employer Benefits Study© for the past 18 years, I have decided to give the survey a ‘rest’ for one year. Believe me, this was not an easy decision. But after a great deal of personal and professional reflection, it is the right decision. My ‘tradition’ has now officially been altered.

In today’s world of perpetual political turmoil, healthcare – more specifically – health insurance, has become a political football. Hasty decisions are being made to benefit political promises, usually at the expense of pursuing sound policy practices. What has occurred in our nation’s capital in 2017 is akin to watching a surgeon perform knee surgery with a butter knife. The process has been extremely agonizing to witness and I find myself wincing as this grotesque process evolves.

Now more than ever, it is important to monitor employer-sponsored health insurance costs and components. After all, health insurance costs continue to outpace the Consumer Price Index (CPI) every year. Rising insurance costs have triggered a host of other health plan changes – forcing employers to offer the most competitive health insurance package that they can. I certainly don’t take this fact lightly.

But another fact is very important to me – the ‘value’ of care received. I firmly believe it should ALSO be on the radar screen for employers, their employees and the general public. Similar to how politician’s view our healthcare ‘system,’ employers appear to be mesmerized, rightfully so, by the insurance cost problems. Recently, Warren Buffett described medical costs as “the tapeworm of American economic competitiveness.”

This cost concern, however, tends to suck the necessary oxygen out of the room, crowding out badly-needed, laser-like attention and focus on key cost drivers that impact costs in the first place. This is ‘downstream’ thinking, the actions we take about fixing the symptoms of problems rather than concentrating on the issues that actually CAUSE the cost ‘pollution’ we find so objectionable. Being distracted with downstream symptoms has lulled us into believing that we simply need to fix the “insurance problem” and the ‘upstream’ pollution will miraculously go away. Inflated health costs are actually more harmful to us because we refuse to look beyond the insurance component to help address the cost conundrum.

This serves as the backdrop on why I decided to place the Iowa Employer Benefits Study© on a one-year sabbatical. It’s time to move ‘upstream‘ and disregard the naysayers who believe the status quo is much too difficult to confront. It is just too easy and expedient to continue the work downstream – making the appearance that something is being done to confront the cost issue. But if ‘optics’ matter, I’m in the wrong business.

In the next few weeks, I will reveal research I’ve wanted to conduct for the last number of years, but did not have the opportunity to pursue – until now. This work will be found under my companion organization, Heartland Health Research Institute. If you haven’t signed up to receive my HHRI posts, you may do so here.

Poet Robert Frost famously wrote, “Two roads diverged in a wood, and I – I took the one less traveled by, and that has made all the difference.”

This road may be lonely, but well worth the effort.

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