How better care causes the hospital to end up in the red

Science podcast ‘Oh Ja Joh?!’ episode 13

Thanks to new techniques, the chances of becoming pregnant have increased, whilst the number of complications has fallen. That sounds like good news. However, health scientist Maura Leusder discovered that this progress can be financially detrimental to healthcare organisations. In the 13th episode of Oh Ja Joh?!, she explains how it is possible that hospitals sometimes miss out on revenue when they provide better care.

'If people need less care, healthcare organisations can claim fewer reimbursements per patient from health insurers. That means you end up in the red,' Maura explains in the podcast.

The system therefore penalises efficiency. Furthermore, one patient may be cured after a single treatment, whilst another may need 10 treatments to achieve the same result. To illustrate this, Maura compares the situation to that of a baker.

Not all bread costs the same

Maura: 'When we walk into a bakery, we think it’s perfectly normal for a premium bread made with better ingredients to cost more than a standard wholemeal bread from the supermarket. But in healthcare, things are very different. There, we expect to be able to use a fixed reimbursement for all kinds of bread. And this is despite the fact that one patient sometimes really does need far more care than another.'

The problem is clear. But how do we solve it? 'Identify where the costs lie within the process and ensure that healthcare professionals are also aware of this. Then they can take this into account and make better decisions. At present, healthcare providers often do not know where the biggest costs lie, and that is how the losses arise,' advises Maura.

Researcher
More information

Want to know more about the podcast? Have a look at Erasmus Extra.

Press questions?

Reach out to Marina van Weele, Erasmus School of Health Policy & Management, via email.

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