🇦🇺Australia

Cost of Rework from Diagnostic Errors

2 verified sources

Definition

Inaccurate intake diagnostics lead to rework, including repeat visits, specialist referrals, and potential patient compensation for misdiagnosis.

Key Findings

  • Financial Impact: AUD 200-500 per rework assessment + 10-20 hours clinician time
  • Frequency: 5-10% of initial assessments (industry rework rate)
  • Root Cause: Reliance on unstructured interviews and manual questionnaires without digital validation

Why This Matters

The Pitch: Mental Health Care wastes 20-40 hours/month on rework. Automation of standardized questionnaires cuts diagnostic failures.

Affected Stakeholders

Psychologists, Psychiatrists, GPs

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Fair Work Act Penalty for Involuntary Detention Errors

AUD 66,600 per serious contravention (Fair Work Act maximum penalty)

STP Phase 2 Non-Compliance in Payroll for Casual Intake Staff

AUD 1,100 per failure to lodge + 200 penalty units for serious STP breaches

Verzögerter Zahlungseingang durch überstrenge oder uneinheitliche Einwilligungsprozesse

Quantified: For a mental health/AOD provider billing AUD 3 million annually, overly restrictive and manual consent/disclosure processes can extend DSO by 10–20 days, immobilising roughly 5–15% of revenue as extra working capital (≈AUD 150,000–450,000 locked in receivables) and generating additional admin labour of 20–40 hours per month in chasing missing consents and resubmitting claims.

Fair Work Act Penalty Failures

AUD 756+ per STP failure (unit penalty); AUD 11,500+ SG charge per employee annually at 11.5% rate

Coordination Bottlenecks in Stepped Care

20-40 hours/month per coordinator in manual delays; 10-20% capacity loss

Überhöhte Verwaltungskosten im Schadensprozess für psychische Erkrankungen

Logic-based estimate: ≈250–700 non-billable staff hours/year on complex mental health-related claims support per mid-sized service (≈AUD 15,000–40,000/year at AUD 60/hour).

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