"Any good company will have a high false negative rate, because it's more expensive to hire a bad candidate than reject a good one." Isn't part of good hiring

"Any good company will have a high false negative rate, because it's more expensive to hire a bad candidate than reject a good one." Isn't part of good hiring practices to determine who is a good candidate? And beyond that, if the candidate is "bad", doesn't the company have the ability to work with the now employee to improve, and if things don't work out, to part ways? It seems like sending someone through endless loops of "maybe" interviews is a waste of both parties time.