ivWatch, the IV safety company, has partnered with Aon, a leading global insurance broker and risk consultant, to quantify the clinical and financial impact of severe IV infiltration and extravasation injuries – one of the most underreported and costly adverse events in healthcare – and to model the return on investment associated with detecting these events earlier.
Aon used multiple types of proprietary data, including the largest database of information on healthcare professional liability claims and true costs of providing healthcare services to quantify the downstream financial consequences hospitals face when IV injuries escalate, including uncompensated remedial care, professional liability exposure, workflow disruption, and patient satisfaction penalties. The model demonstrates that early detection through continuous IV monitoring significantly reduces patient harm and helps prevent severe IV injuries from becoming costly and clinically problematic for hospitals.
IV injuries develop silently and are frequently unrecognized, misdiagnosed, or inadequately reported until they progress to severe outcomes. A recent large retrospective study published in the British Medical Journal analyzed the use of ivWatch technology in the early detection of peripheral intravenous infiltration or extravasation (PIVIE) compared with conventional observed methods. The study showed a 93% reduction in the severity of IV injuries when continuous sensor-based monitoring was used.
When identified too late, IV injuries can result in serious patient harm, including skin necrosis, scarring and staining, nerve damage, medication dosing errors, and, in extreme cases, amputation.
By combining the strong clinical efficacy of ivWatch with Aon’s proprietary healthcare liability, cost, claims, and hospital benchmarking data, the analysis evaluated the expected outcomes of implementing ivWatch in both pediatric and non-pediatric hospital settings. The model highlights the often-unaccounted-for financial consequences of IV extravasation events, including professional liability exposure and uncompensated care, as well as patient satisfaction and reliance on central lines.
According to the validated model, preventing severe extravasation events could translate into annual margin impacts of $8.9 million to $13.4 million for a 150-bed pediatric hospital and $5.1 million to $7.9 million for non-pediatric hospitals. Even using conservative assumptions, the analysis shows return of roughly 7x to 14x.
“IV extravasations represent a significant source of risk and downstream costs for hospitals, and that risk is often underestimated or goes uncalculated altogether,” said John Rudoy, healthcare industry practice leader at Aon. “When those costs are finally quantified, it becomes clear that severe IV injuries drain millions from hospital margins every year and that earlier detection can significantly reduce that exposure.”
The findings also highlight substantial potential savings from preventing the costly follow-up care hospitals often absorb, including surgical interventions, extended hospital stays, and ICU days. Aon estimates that reducing this unreimbursed care alone could improve hospital margins by $1.6 million to $5.6 million annually, depending on patient population and payer mix.
“When serious IV injuries occur, hospitals are often blindsided by a cascade of clinical and financial challenges,” said ivWatch President Erin Wendell. “What starts as a routine procedure can quickly escalate into catastrophic outcomes for patients, clinicians, and healthcare institutions. These events are largely preventable with proven technology that delivers better patient care and a significant return on investment.”
Beyond direct cost avoidance, the model also accounts for workflow disruption caused by increased readmissions, extended lengths of stay, and the need for additional clinical resources. Reduced legal exposure, including lower cost judgments, lower legal costs, lower insurance premiums, and fewer judgments, results in immediate annual savings. In addition, patients who do not experience complications are twice as likely to give a top satisfaction rating, and for every 10% improvement in top ratings, hospitals see an estimated 1.5% improvement in revenue.
Aon exists to shape decisions for the better. Through actionable analytic insight, globally integrated risk capital and human capital expertise and locally relevant solutions, Aon provides clients in over 120 countries with the clarity to make better risk and people decisions. Aon works specifically within the healthcare industry to help health systems meet the future by managing the increasingly complex risks they face while optimizing their revenue models.
ivWatch continuously monitors IV sites and alerts clinicians when early signs of infiltration or extravasation are detected, allowing intervention before injuries escalate. The technology uses near-infrared light and a predictive algorithm, holds nearly 70 patents globally, and is the only FDA-cleared and CE-marked solution proven to help reduce IV injury severity through continuous monitoring.
The full ivWatch Aon Value Estimation white paper is available to view and download.
Read more here.