The NHS is spending as much as £2.5bn a year on paying for mistakes, according to a new report.
Consultants Frontier Economics found the extra treatment required, extra beds being taken up, extra nursing time, as well as a huge compensation bill, costs the taxpayer a fortune.
Between £1bn and £2.5bn is spent annually on rectifying errors that have resulted in someone being put in greater danger, the consultants found.
Health Secretary Jeremy Hunt will make a speech later setting out why action is needed to reduce the waste from mistakes.
He will say that a culture change is what is needed to tackle the problem that leads to errors being made.
But the Royal College of Nursing is arguing that any poor care is the result of understaffing on wards, which it says is caused by Government policy.
Last year the NHS spent £1.3bn on payouts to people who had sued over poor patient care.
The four most common problems, according to the Department of Health, are falls and trips, bed ulcers, urinary infections caused by poorly fitted catheters and deep vein thrombosis.
People who end up having to be treated for those conditions cost the NHS an extra £200m a year in extra care alone.
Mr Hunt will tell staff at Birmingham Children's Hospital: "I want every director of every hospital trust to understand the impact this harm is having not just on their patients but also on their finances.
"And I want every nurse in the country to understand that if we work together to make the NHS the safest healthcare organisation in the world, we could potentially release resources for additional nurses, additional training and additional time to care.
"It would be tempting to set up a new target or issue a new ministerial decree. But that would be a mistake. Because the culture change we need to develop has to come from inside."
Dr Peter Carter, chief executive of the Royal College of Nursing, said the Government needed to invest in more staff before patient care could be improved.
He said: "Every nurse's first priority is patient safety, and they are well aware of the effects of poor care.
"Though these proposals are well intended, logic suggests that you need to invest in additional staff first, and then you will find that your short term investment leads to longer-term savings."
Anna Bradley, chair of patients' watchdog Healthwatch England, said: "The principle behind this initiative is absolutely right - what is good for patients is ultimately often cheaper for the system.
"To make this work we need a compassionate and effective complaints system that addresses people's concerns when things go wrong and works with them to improve services for the future."
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