High-risk enterprises lead to spiraling costs

When you make a mistake in your business, the cost you end up paying can vary greatly. From issuing a public apology, for example–difficult enough especially if your audience is huge and powerful–to fighting a lawsuit. But when your mistake involves people dying–especially in large numbers as in the biomed and pharmaceutical industries–you can end up paying even unto the demise of your company.

A recent clinical trial in Britain has proven that a very commonly accepted approach to treating serious head injuries actually kills more people than doing nothing. They’re estimating perhaps 10,000 people have died after receiving this treatment.

That’s really dragging out a big mistake. But because our society totally depends on doctors and drugs, the punishment will probably not be overwhelming. However, some of the individual people who lost loved ones may join the long list of litigants seeking redress for medical ignorance and calling it malpractice.

And the painful spiral to higher malpractice insurance costs–and doctors who give up because they just can’t stand to see so much of their income tossed away–spins faster.

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