CHICAGO – Nationwide, health care providers continue to experience relatively flat medical malpractice costs according to the Aon/ASHRM Hospital and Physician Professional Liability Benchmark report. The 2014 report was released today by Aon Risk Solutions, the global risk management business of Aon plc (NYSE: AON), in conjunction with the American Society of Healthcare Risk Management.
“Although overall cost levels appear to be calm, these seemingly still waters hide a system of swirling undercurrents,” said Erik Johnson, leader of the health care practice group with Aon’s Actuarial & Analytics Practice. “Proactive organizations are using data, analytics and business intelligence to reduce costs and strengthen risk management in this stable environment. Our report helps these organizations to identify underlying problem areas, even when the overall picture looks good.”
Ron Calhoun, health care practice leader for Aon Risk Solutions adds, “Health care providers are adapting to transformations in the way services are paid for and delivered. The benchmark information in this report can serve as a diagnostic tool to identify areas where clinical integration and risk management can be used to narrow practice pattern variations and improve results.”
The 2014 report examines medical malpractice trends from several useful vantage points, including:
The link between quality of care and medical malpractice claim frequency
New to this year’s study, patient satisfaction scores were compared to the frequency of medical malpractice claims for specific facilities. Facilities scoring highly in the survey tended to have significantly lower frequency of medical malpractice claims. The result indicates that risk managers can use survey scores as a “marker” for detecting and remediating areas in need of improvement.
A survey of claim frequency and severity by cause of loss
For the first time, the report incorporates text mining techniques to measure the relative frequency and severity, or average cost, of claims by the cause of loss. This brings a new level of specificity to risk managers’ ability to identify potentially costly risks.
Claim frequency and severity benchmarks by state
The benchmark study provides statistical information specific to 27 states as well as the District of Columbia. For California, a special section of the report highlights our analysis of the impact of Proposition 46 – the proposed change to the Medical Injury Compensation Reform Act’s non-economic damage caps.
Noteworthy statistics from the 2014 Aon/ASHRM Hospital Professional Liability Benchmark report
To purchase a copy of the 2014 Aon/ASHRM Hospital Professional Liability and Physician Liability Benchmark report, visit ASHRM online store: http://www.ashrm.org/store.
About the Aon/ASHRM Hospital Professional Liability Benchmark report
The database includes 110 US [ADL1] health care systems, representing 29 percent of the total U.S. hospital industry. Data collected includes approximately 100,000 non-zero claims, representing more than $16 billion of incurred losses. The database contains historical claim information for 10 accident years (2004 to 2013). 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, analysis and comparison of the claim and exposure data, risk managers develop proactive strategies to reduce risk related costs and ultimately improve outcomes.
Aon plc (NYSE:AON) is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 66,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world’s best broker, best insurance intermediary, best reinsurance intermediary, best captives manager, and best employee benefits consulting firm by multiple industry sources. Visit aon.com for more information on Aon and aon.com/manchesterunited to learn about Aon’s global partnership with Manchester United.
The American Society for Healthcare Risk Management (ASHRM), is a personal membership group of the American Hospital Association (AHA). We support healthcare risk managers by serving as their voice, building awareness about the profession, delivering the information they need and fueling their career development. Today, over 6,000 members and 42 affiliated local chapters represent ASHRM’s variety of healthcare-related entities with clinical, legal and financial interests.
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