New Report: No Growth Expected In Number Of Medical Malpractice Claims

162017_132140396847214_292624_nThe Hospital and Physician Professional Liability Benchmark Analysis is an annual publication of Aon Risk Solutions in conjunction with the American Society for Healthcare Risk Management. According to Aon Risk Solutions website, the annual report details the growth of integrated self-insurance strategies and is designed as a tool to provide health care risk managers with a better understanding of their cost of risk compared to an industry benchmark to assist them in developing proactive strategies to reduce risk related costs and ultimately improve outcomes.

The author of the recently released 2013 Aon/ASHRM Hospital and Physician Professional Liability Benchmark report concludes, “We project zero growth in the number of malpractice claims. Health care professional liability claims are subject to a complicated set of geographic, societal, and technological influences. These forces are largely in-check, resulting in a low inflationary environment for medical malpractice.”

The 2013 report estimates that in 2014, medical malpractice claims will represent $0.60 per every $100 of hospital revenue or an average of $135 per hospital admission. The 2013 report found that the cost of medical malpractice is growing at the slowest rate in the fourteen year history of the Aon/ASHRM Hospital and Physician Professional Liability Benchmark report.

The 2013 annual report is based on an analysis of a database containing historical claim information for 10 accident years from 2003 to 2012 that includes 118 U.S. health care systems (28% of the total U.S. hospital industry). Data collected includes 103,379 non-zero claims, representing more than $16.6 billion of incurred losses.

The 2013 report highlights the following statistics:

– Projected loss rate for hospital professional liability is $2,940 per occupied bed equivalent (OBE) for events occurring in 2014. The frequency of claims is projected to be 1.67% per OBE and the severity of claims is expected to be $176,000 per claim.

– Projected loss rate for physician professional liability is $6,030 per class 1 physician for events occurring in 2014. The frequency of claims is projected to be 2.97% per class 1 physician and severity of claims is expected to be $203,000 per claim.

– Projected loss rate for hospital general liability is $119 per occupied bed equivalent. The average general liability claim is expected to be $36,000 for claims occurring in 2014.

– Projected loss rate for obstetrics claims occurring in 2014 is $171 per birth.

– Projected loss rate for emergency department claims is $6.16 per visit.

– Obstetrical claims have a disproportionate impact on large claim trends.

– The hospital professional liability benchmark database includes claims from all U.S. states and provides specific benchmarks for 28 states. Florida ($7,440) and Pennsylvania ($4,720) have the highest projected loss rates for 2014; Indiana, ($800) and Minnesota ($810) have the lowest projected loss rates for 2014.

Quoted extensively from this source.

Report: Long Term Care (Nursing Home) Claim Frequency Also Stable, But Claim Severity And Loss Rates Growing At 4% Annually

An Aon Risk Solutions report entitled “2012 Long Term Care General Liability and Professional Liability Actuarial Analysis” found that long term care (nursing home) liability loss rates and claim severity have reached an eight-year high and are expected to grow steadily in 2013.

Since 2005, the annual loss rate (liability costs relative to occupied long term care beds) has grown from $1,040 to a projected $1,480 in 2012 and is expected to increase again in 2013 to $1,540, based on an analysis of 19,500 individual claims from long term care facilities. Claim severity (claim size) also has grown from a low of $109,000 per claim in 2005 to a projected $168,000 per claim in 2012 and $175,000 in 2013.

Claim severity and loss rates have been growing consistently since 2009 at a rate of 4% annually, even though claim frequency has been stable since 2008.

Quoted extensively from this source.

If you or a loved one have been injured as a result of medical malpractice in the United States, you should promptly consult with a local medical malpractice attorney (or nursing home claim attorney) in your state who may investigate your malpractice claim for you and represent you in a malpractice case, if appropriate.

Click here to visit our website to be connected with medical malpractice lawyers or nursing home claim lawyers in your state who may assist you with your injury claim. You may also reach us on our toll-free line: 800-295-3959.

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This entry was posted on Saturday, November 16th, 2013 at 9:31 am. Both comments and pings are currently closed.

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