Do healthcare managers have an ethical duty to admit mistakes?

Historically, healthcare organizations have been reluctant to admit mistakes because of potential legal liability. Admitting mistakes and taking corrective and compensatory action may reduce the likelihood of a lawsuit and, if a lawsuit is lost, may reduce the punitive damage award. Financial consequences involve admitting mistakes and incurring the associated compensatory costs or not admitting mistakes and incurring associated compensatory and punitive damages for the mistakes that are discovered later. Ethical consequences revolve around managers' duty to patients, the healthcare organization, and themselves and their families.