[…] how much should this little mix-up cost the hospital? Anything? Something? Is 50K about right? The mixup occurred when the IDs were […]

There’s this school of thought that says unless a corporation is forced to feel it in their pocketbook, they will not have any incentive to make the necessary changes ensuring a mistake like this (or even a worse one) doesn’t happen again.

That’s the reverse side of the “free market economy.” If the free hand of the market is to work, it has to be allowed to bitch-slap wrongdoing.

At least, that is the theory.

They’ll feel it alright–in bad publicity. Though, the saying goes, “There’s no such thing as bad publicity.” Exxon can confirm.

Shoot, sometimes I think I’d *pay* 50K to find out I was switched at birth.

While I tend to think that the hospital wouldn’t do as much if they weren’t severely bitch slapped over this, I’d feel better about the $100 grand as a punishment fine donated to some non-profit that helps families with ill children or something. Sure, the parents were traumatized to some degree, but that does seem excessive compensation to them. On the other hand, $100 grand is not excessive punishment for the hospital in that it will compel them to change for the better - and do it fast.

Jon, you were switched at birth. You can trust me on this one. Please send the check to …

I would not want to place a price tag on trauma…at the same time, I wonder if every emotional stress that happens in our lives qualifies as ‘trauma’.

Our litigious society…and some of us wonder why health care is so expensive…

Tort as a percentage of annual health care spending amounts to……………………

…less than half of 1%.

::link::

Me, I don’t wonder why health care is so expensive. Don’t ask a lawyer; ask an insurer.

Humana profits

United HC profits

Kaiser Permanente profits

Aetna profits

Cigna profits

Wellpoint profits

A friend of mine told me of a case where a woman was given the wrong baby. Breastfed the baby, bonded with the baby for quite a few hours, etc. Come to find out - not her baby.

My friend met this woman quite a few years after this happened and it was stilled referred to in hushed tones. Apparently, it was extremely traumatic and she had a little breakdown.

So, yeah - a 50K apology - doesn’t seem entirely out of order.

Andy,
I was curious to see if defensive medicine was factored into your stat, and found,

Including awards, legal fees, and underwriting costs, the total amount spent defending U.S. malpractice claims was an estimated $6.5 billion in 2001, or 0.46 percent of total health spending.

Defensive medicine could contribute more to health spending than malpractice payments do, but it is difficult to measure and estimates vary widely, say the authors. Even the upper estimate—9 percent, according to the U.S. Department of Health and Human Services—would explain only part of the higher U.S. health spending, they say.

Though I certainly like to bash litigiousness, I think this situation, the hospital “dodged a bullet” given that there seems to have been limited “injury.” I think they (the hospital) would undoubtedly be more careful going forward.

But Andy, if you “socialize” medicine we will no longer have the best medical system in the world. There are other factors (”ask an economist”) and policies that–while probably well-intended, relieve downward pressure on prices. I’d say those factors and policies should be scrutinized before restricting the freedom of people by “price and/or wage controls.”