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The article highlights challenge the hospitals have been facing to improve the quality of the health care and operational efficiencies. Nevertheless, recent reports reveal that an estimate of over 200,000 Americans die from preventable medical errors, some of which are related to facility-acquired conditions. The reports reveal that the medical error in United States was at a cost of $19.5 billions in 2008. Additional medical costs accounted to 87% of the medical errors including such as the ancillary services and prescription drug services. According to a study conducted by Milliman in 2010, the cost of $1.4 billion was associated with increased mortality rate. In additional, a cost of $1.1 billion was as a result of loss of productivity at the workplace due to short disability claims. However, with such increasing costs and preventable deaths, quality care is the best care, but not consistently delivered in many hospitals in America. Whatever the measure, the patients and the society are paying high costs due to poor quality of the health care. As a result, the article reveals that the health care leaders and professionals are taking steps on health reforms quality strategies that will improve the safety of the population.

The article reveals that preventable medical harm has been an on-going process, and hospitals have been receiving reimbursements to ensure quality and patient’s safety. Hospitals operating under free-for-services system have fared better since patients follow-up the health care after an error has occurred. Nevertheless, Patient Protection and Accountable Care Act (PPACA) which is a recent health reform legislation, has brought up a number of quality improvement provisions. Some of the provisions include value-based purchasing and accountable care organization which aim to change the method of health care provision in the United States.

The Center for Medicare and Medicaid Services (CMS) has approved that the provisions will stop preventable readmissions and health care facility–acquired conditions. As noted in the article, several failures in the US health care systems has led to several medical errors. As a result, the recently enacted health reform has been a major factor by cutting down the expenditure cost on the federal government for the health care. Under PPACA, the article explores incentives and disincentives being provided in every hospital, nursing home and physician for better quality care. For example, the article indicates from a patient’s safety survey that the new purchasing procedures of multi-dose medication compared to a single dose have reduced the risk of harm and death of patients.

Also, the article indicates that the legislation reform promoted new investment in technology development and medication. A new goal has been propelled by the life cycles of equipment used in health institutions that limit the plans to purchase new technology. In addition, the article reveals that the new reform has scraped off the accreditation process which was instituted in the past and replaced the medicine field with financial penalties for those who practice poor health care. Apart from providing better health care, the article explains how the legislation is intended to reduce the costs of Medicare, as well as insurance. The aim of the PPACA legislation under Medicare and Medicaid innovation is to improve efficiency and reduce costs by establishing test innovative payment and service delivery models. The article proposes the use of a health reform system that will develop a culture of safety and quality health and reduce liability to the population.


Andel, C., Davidow, S.L., Hollander, M., & Moreno, D.A. (2012). The economics of health care

quality and medical errors. Journal of Health Care Finance, 39(1). Retrieved from:

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