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Peer Review Jul 18, 2023

The Need for Standardized Peer Review Processes in Healthcare: Addressing Bias and Cost Challenges

Non-standardized peer review poses challenges: biased assessments, compromised reliability, financial implications.

Medical decision-making involves inherent uncertainty, making peer reviews vital for ensuring reliable medical services and patient safety. The peer review process was established in the 1950s by the Joint Commission of Accreditation of Healthcare Organizations, recognizing the need for standardized hospital safety information. However, the implementation of peer review procedures varies among healthcare organizations, leading to different review processes in different hospitals. This article explores the consequences of non-standardized, biased peer review processes, particularly for rural hospitals, and highlights the potential benefits of implementing external reviews.


The Challenges of Non-Standardized Peer Review:

While accrediting bodies require peer review, the specific procedures are left to individual healthcare organizations. Many hospitals conduct quality reviews internally through committees, while others opt for external reviews. However, a significant shortcoming is the lack of requirement for peer reviewers to match the specialty or experience of the reviewee, potentially leading to biased reviews when clinical expertise does not align.

Concrete Consequences for Rural Hospitals:

For rural hospitals, non-standardized, reactive, and biased peer review processes have tangible consequences. Patient injuries that go unreimbursed, such as pressure injuries, can result in significant costs for healthcare facilities. According to the Centers for Medicaid and Medicare Services (CMS), these wounds can add over $43,000 to a hospital stay and may even lead to costly nuclear verdicts in the range of millions. The financial impact of such cases highlights the importance of improving peer review processes.

The Potential of External Peer Review:

Implementing external peer review processes presents an opportunity for healthcare organizations to save up to 20% of their expenses, as noted by Pamela Popp, Chief Risk Officer at Gallagher Bassett. By engaging external reviewers with specialized expertise, hospitals can enhance the objectivity and fairness of the review process. This approach not only saves costs but also improves the existing peer review systems, ensuring patients have access to the best possible care.view systems, ensuring patients have access to the best possible care.


Despite the critical role of peer review in medical decision-making, the lack of standardization across healthcare organizations presents challenges. Non-uniform review processes can result in biased assessments, compromising the reliability of medical services for patients. Moreover, these processes can lead to significant financial implications for healthcare facilities. To address these challenges, hospitals should consider implementing external review processes, which offer the potential for cost savings and improved peer review outcomes. By standardizing and enhancing the peer review process, healthcare organizations can ensure that patients receive high-quality care while mitigating the financial risks associated with flawed peer review systems.


Ready to learn more about medical peer review? Read our new guide, , or fill out the form below to get started with Medplace.

Jerrod Bailey is the CEO of Medplace, an app built for healthcare, legal, and insurance industries to streamline their case and peer review processes. He holds over 20 years of experience in venture-backed technology companies and specializes in healthcare technology development and human-centered user experience design. Jerrod has helped launch over 100 technology start-ups, including corporate new ventures with American Express, Intel, and other notable names.


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