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#2. What does it cost to do a meaningful Root Cause Analysis?

Forgive us in advance for a very lengthy response. The cost of conducting a root cause analysis varies as a function of the complexity of the event or condition under study, the familiarity of the root cause analysis team with the root cause analysis process, the root cause analysis process selected and the thoroughness of the analysis itself. Having one or two persons sit down and fill out the JCAHO's form in an hour engenders a minimal immediate dollar outlay, but guarantees unacceptably greater costs later. In our experience, conducting a reasonable analysis by an experienced team composed of appropriately selected internal staff (no consultants) costs an average of $7,300 in direct salary costs plus another $2,400 in personnel benefit costs (benefits assumed to be roughly 33% of salary) for a total direct personnel cost of $9,700. Add to this overhead costs (physical plant, information technology, etc.), and if applicable, lost revenue.

As a specific example, we were asked to facilitate an already in-process root cause analysis involving an unexpected, post-surgical death at a small community hospital. The root cause analysis team consisted of the two surgeons on the case (one being the department head), the head OR nurse, two scrub nurses, the anesthesiologist, two recovery room nurses, and three nursing assistants, plus the risk manager. Because of the personnel involved, a normally active OR was shut down during those meetings at a cost of $19/minute. The team had met for three hours each day for four days, and was not nearly half finished. This team was conducting its first root cause analysis, and trying to do so "properly." They had thus spent an estimated $5,700 in salaries, $1,900 in benefits and $13,700 in lost OR time for a total of more than $21,000 with the half-way point not yet within reach. By changing their root cause analysis process, they were able to complete their analysis for an additional $2,400 in combined salary and benefit costs and $1,200 in lost OR time. The root cause analysis was, in the opinion of the hospital's Risk Management Committee, a "thorough and credible one", and brought about process changes that effectively reduced the likelihood of recurrence of that and similar events.

We feel that by carefully designing one's root cause analysis processes, the average combined direct (salary plus benefit) costs for an root cause analysis that will withstand and surpass JCAHO scrutiny can be reduced to an average of approximately $3,700.

 

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About MRMA.  Automate Root Cause Analysis.  Root Cause Analysis Training Comments.  Copyright.  Costeffective Root Cause Analysis.  Credible Root Cause Analysis.  Protection from Discoverability.  Reporting of Sentinel Events to JCAHO.  Root Cause Analysis Cost.  JCAHO Requirement for Root Cause Analysis  JCAHO Sentinel Event Reporting Options.  Proximate cause, root cause versus contributory factor.  Root Cause Analysis on Non-Sentinel Events.  RCA on Sentinel versus Adverse Event.  Reaction to JCAHO Sentinel Event Policy.  Suicide RCA Data.  Root Cause Analysis Policy Implementation.  Root Cause Analysis Standards.  Software facilitation of root cause analysis.  Thorough & Credible Root Cause Analysis.  DoD Sentinel Event Reporting.  Literature Review in Root Cause Analysis.  Root Cause Analysis Training.  FAQ's on Root Cause Analysis.  FOCUS-PDCA.  Guestbook.  Implementing Root Cause Analysis Policy.  MRMA Home.  Inforequest.  Links.  Patient-Doctor Dialog.  Freedom from Restraint.  JCAHO Reporting Options.  Root Cause Analyst.  Thankyou.  Root Cause Analysis Theory.  Root Cause Analysis Training.  Root Cause Analysis Training.  Sample Root Cause Analysis Report.  Sample RCA Contributory Factor Tree Diagram.  Root Cause Analysis Reporting Form. 
About MRMA.  Automate Root Cause Analysis.  Root Cause Analysis Training Comments.  Copyright.  Costeffective Root Cause Analysis.  Credible Root Cause Analysis.  Protection from Discoverability.  Reporting of Sentinel Events to JCAHO.  Root Cause Analysis Cost.  JCAHO Requirement for Root Cause Analysis.  JCAHO Sentinel Event Reporting Options.  Proximate cause, root cause versus contributory factor.  Root Cause Analysis on Non-Sentinel Events.  RCA on Sentinel versus Adverse Event.  Reaction to JCAHO Sentinel Event Policy.  Suicide RCA Data.  Root Cause Analysis Policy Implementation.  Root Cause Analysis Standards.  Software facilitation of root cause analysis.  Thorough & Credible Root Cause Analysis.  DoD Sentinel Event Reporting.  Literature Review in Root Cause Analysis.  Root Cause Analysis Training.  FAQ's on Root Cause Analysis.  FOCUS-PDCA.  Guestbook.  Implementing Root Cause Analysis Policy.  MRMA Home.  Inforequest.  Links.  Patient-Doctor Dialog.  Freedom from Restraint.  JCAHO Reporting Options.  Root Cause Analyst.  Thankyou.  Root Cause Analysis Theory.  Root Cause Analysis Training.  Medical Risk Management Associates.  Sample Root Cause Analysis Report.  Sample RCA Contributory Factor Tree Diagram.  Root Cause Analysis Reporting Form.