Adverse Events

Adverse Events in the hospital systems of developed nations are generally accepted as a major problem. There have been several landmark studies that have conclusively established that adverse events are a serious and costly problem.

Costs of Adverse Events

The total costs (health, economic and social) of adverse events are significant. Studies in recent years that have identified the magnitude of the economic and social cost:

  • The Quality in Australian Health Care Study (QAHCS) found that 16.6% of hospital admissions were associated with an Adverse Event, and that 18.5% of these Adverse Events resulted in permanent disability or death. This equates to approximately 18,000 deaths that are attributable to Adverse Events. The estimated annual cost of Adverse Events to the Australian healthcare system is AUD$2 billion1.
  • In 2001 a study estimated 850,000 'adverse events' occurred within the United Kingdom National Health Service (NHS) every year, causing more than 40,000 deaths and costing £2 billion in direct costs and £400 million in medico/legal costs2.
  • A 1999 study in the United States found that up to 98,000 people per annum died as a result of an adverse event within the United Stated hospital system with avoidable costs of approximately $US 17b per annum3.
  • Similar studies in the United States and New Zealand have confirmed that 4%-17% of hospital admissions have been associated with an adverse event caused by medical management. The average length of stay in hospital for patients who suffer an adverse event was approximately 4 times that of a patient who did not experience one, resulting in substantial rehabilitation and recovery costs4.
  • Studies show that up to 70% of adverse events can be prevented. A recent study in Australia found, (using some of the elements of the Patientrack Solution) that mortality rates from adverse events could be reduced by approximately 37% (50% case mix adjusted) using manual intervention techniques not supported by any IT applications5.
  • Another recent Australian study confirmed these results and showed that reducing the number of adverse events could lead to significant savings for hospitals. The study estimated that a 300-bed hospital could expect to save 3,500 bed days each year by reducing the number of adverse events6.

  1. Wilson RM, Runciman WB, Gibberd RW, Harrison BT, Newby L, Hamilton JD. The quality in Australian Health Care Study. MJA. 1995;163:458-471
  2. British House of Commons Public Accounts Committee, 2001
  3. Institute of Medicine study, United States, 1999
  4. Buist et al MJA, 1999
  5. Wilson, Harrison et al, An Analysis of the causes of adverse events from The Quality in Australian Health Care Study, MJA May 1999. Buist et al, Effects of a medical emergency team on reduction of incidence and mortality from unexpected cardiac arrests in hospitals, BMJ 2002.
  6. Bellomo et al, A prospective before-and-after Proof Of Concept of a medical emergency team, MJA, 2003.