Medicare to cut payments when hospitals make mistakes

In an effort to reduce the estimated $37.6 billion a year that is lost because of medical mistakes, Medicare is reformulating the way it reimburses hospitals (Source: “Medicare pushes hospitals on patient safety,” Columbus Dispatch, July 7, 2008).

Hospitals have typically been paid a higher rate to treat complications that result from treatment errors that occur during a patient’s hospital stay. But starting Oct. 1, Medicare won’t pay that higher rate for conditions it considers preventable, such as bed sores, burns, wrong-site surgeries or falls. Medicare officials estimate the policy change will save $90 million from 2009 to 2013.