New Leapfrog Group Tool Helps Purchasers Calculate Cost of Hospital Errors

Slightly more than a year after the Leapfrog Group unveiled its letter grades for hospital safety, the employer-driven not-for-profit organization has introduced an online tool to help purchasers calculate the annual costs of hospital errors, accidents and infections. The hidden surcharge calculator, developed by a team of experts in patient safety, hospital finance, and policy, is designed to allow employers to determine how much they pay each year in unnecessary medical-related costs.

By inputting claims data and local hospital safety rankings, purchasers are able to calculate both the total surcharge for hospital errors and the average amount spent on errors per patient admission each year. Leapfrog estimates that a purchaser pays, on average, $7,780 in hidden surcharges when a patient is admitted to a hospital with a safety score of “C,” “D” or “F.” The calculator includes an example of an employer with 1,000 annual hospital admissions that would pay a $7.7 million surcharge for the year.

Several NBCH coalition members are Leapfrog Regional Rollout Leaders and active in publishing hospital safety data for use in their markets.