4sight Health January 14, 2025
Ken Terry

Misdiagnosis leads to an estimated 371,000 deaths and 424,000 permanent disabilities in this country each year. I believe that market incentives may lie at the root of this problem. If so, changes in how we finance healthcare can help fix it.

Today, most U.S. healthcare is still paid for on a fee-for-service basis. This means that there is no financial penalty — other than a possible malpractice suit — for misdiagnosing a patient’s health issue. Of course, doctors want to find the correct diagnosis as swiftly as possible, and health organizations want to minimize systemic errors such as performing the wrong test, misplacing specimens, or failing to report results in a timely manner. But most health systems do not prioritize...

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