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Med Mal News

By ALM Staff | Law Journal Newsletters |
May 28, 2013

Malpractice Proves Profitable

A study published in the Journal of the American Medical Association (JAMA) asserts that hospitals are being incentivized to provide substandard care by the manner in which insurers pay them. Specifically, hospitals not only are not penalized for bad medical outcomes, they reap additional profits from the extra services injured patients require to remedy the effects of bad medical care. The study, conducted by Texas Health Resources, the Boston Consulting Group and Harvard University's schools of medicine and public health, looked at the records of nearly 35,000 patients who underwent treatment at one of 12 hospitals run by Texas Health Resources. Of these, more than 1,800 experienced avoidable medical complications, which, on average, more than doubled their hospital bills, increasing hospital profits.

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