Health care costs are increasing more rapidly than costs for other products and services. Health care providers, particularly hospitals, are under significant pressure to reduce costs while at the same time improving service and patient safety, reducing patient waiting times, and minimizing errors and associated litigation.
However, most hospitals are not making the necessary improvements in cost, quality, and safety. A report by the HHS Office of Inspector General finds that 20 percent of consecutive inpatient stays were associated with poor quality care, unnecessary fragmentation of care, or both.
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