It sounds like a goofy plotline from an old M*A*S*H episode, where Frank Burns would accidentally leave a surgical sponge inside a patient, leaving it for Hawkeye to retrieve and save the day.

But the reality of modern-day surgeons leaving sponges in patients is no laughing matter. Nor is it a statistical rarity. In fact, it happens 1,500 times a year, 1 in 200 patients who spend the night in the hospital will die from a medical error, according to published research findings.

ClearCount Medical Solutions is seeking to sharply reduce the frequency of these incidents, or eliminate them outright. Based in Pittsburgh, ClearCount has developed what’s called the SmartSponge System, which uses a dime-sized radio-frequency identification (RFID) chip embedded in the sponges that allow them to be counted and tracked before they go inside the patient. As surgery is finished, the medical staff makes sure that all sponges are accounted for, lest one of them ends up sewn inside a patient.

“This provides an improved patient-safety benefit to hospitals,” says David Palmer, CEO of ClearCount. “Our system addresses the increased pressure on hospitals to eliminate retained surgical sponges, through an easy-to-integrate, efficient and thorough count reconciliation and detection solution.”

It’s not just a matter of health and safety, as the incidents can be costly: According to the Federal Register, the average Medicare payment for admissions in which an object is left behind during surgery is $61,962, and Aon/American Society of Hospital Risk Managers estimates the liability and cost of a medical lawsuit to be between $100,000 and $150,000 for settlement.

ClearCount’s technology all started when an operating room nurse and her husband developed the patent. The nurse, Sharon Morris, simply grew weary of too many "close calls" that required her to get down on her hands and knees to search for a missing sponge. The patent was licensed to ClearCount.

A top priority was to ensure that the implementation of ClearCount’s tracking products wove smoothly within the surgical process without presenting any logistical burden. As a result, ClearCount’s chips automatically verify each sponge within a second after a pack is scanned, validating the number and types of sponges within. As sponges are soiled and tossed, the system automatically verifies this, with no need for manipulation on the part of the surgeon and/or his team.

The system is also equipped with a wand for detecting sponges that may get left inside a patient. If the counts on the screen are not reconciled and there’s still a sponge missing from the bucket, the user has the ability to scan the patient for retained sponges. If the wand detects one or multiple sponges from a scan, the type and quantity will appear on the screen, allowing the surgical team to retrieve exactly what they are missing.

ClearCount’s Palmer is clearly staking his company’s bottom line on this technology. Earlier this year, ClearCount introduced what is called a “Never Event Warranty,” promising to cover all unreimbursed surgical costs related to a sponge left inside a patient. ("Never event" is an insurance term that refers to preventable injuries and infections that are often not reimbursed.)