CHICAGO (Oct. 8, 2018) – The cost of extreme, or catastrophic, professional liability claims is increasing at a rate higher than typical self-insured claims, which are trending at two percent annually, according to the Aon/ASHRM Hospital and Physician Professional Liability Benchmark report. The 2018 report was released today by Aon plc, the leading global professional services firm providing a broad range of risk, retirement and health solutions, in conjunction with the American Society for Health Care Risk Management.
“Even though the typical professional liability claims environment is stable, the Aon/Beazley analysis of excess claims suggests that the driver of the changing environment is the cost of extremely large claims. The frequency of claims above $5 million is increasing and they are trending at higher rate,” said Virginia Jones, FCAS, MAAA, Associate Director and Actuary at Aon. “Obstetrics claims and higher risk jurisdictions are contributing to this uptick in large claims, making it vital that health care systems have the risk management know-how to appropriately deal with a large claim should one occur.”
One of the ways organizations can gain intelligence to ultimately reduce costs is by utilizing root-cause analysis. New this year, the study included insight from Coverys into how to approach root-cause analysis and its benefits. Focusing on the root cause of medical malpractice area within an organization can help organizations identify and promote best practices to improve the consistency and reliability of the health care delivery model.
The 2018 study also analyzed data based on three new demographic comparisons:
Other Noteworthy statistics from the 2018 Aon/ASHRM Hospital Professional Liability Benchmark report:
Click here to purchase a copy of the 2018 Aon/ASHRM Hospital and Physician Professional Liability Benchmark report.
About the 2018 Aon/ASHRM Hospital and Physician Professional Liability Benchmark report
The database includes 118 U.S. health care systems, representing 33.6 percent of the total U.S. hospital industry. Data collected includes 107,419 non-zero professional liability claims, representing more than $20.2 billion of incurred losses. The database contains historical claim information for 10 accident years (2008 to 2017). All ASHRM members were invited to participate in the study, which is designed as a hands-on tool to provide health care risk managers with a better understanding of their cost of risk compared to an industry benchmark. Through measurement and analysis of claim and exposure data, risk managers can develop proactive strategies to help reduce risk-related costs and improve related outcomes.
Aon plc (NYSE:AON) Aon is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance. Aon has five specific global solution lines: Commercial Risk Solutions, Reinsurance Solutions, Retirement Solutions, Health Solutions and Data & Analytic Services.
About the American Society for Health Care Risk Management (ASHRM)
The American Society for Health Care Risk Management (ASHRM) is a professional membership group of the American Hospital Association (AHA) representing enterprise risk management, clinical, insurance, legal, patient safety and other related interests.
ASHRM promotes effective and innovative risk management strategies and professional leadership through education, advocacy, publications, networking and interactions with leading health care organizations and government agencies. ASHRM initiatives focus on developing and implementing safe and effective patient care practices, the preservation of financial resources and the maintenance of safe working environments.
Sadie Schwarm, Sadie.email@example.com, 217.502.4521