Nationwide, health care systems continue to experience a moderate decrease in the frequency of professional liability claims according to the Aon/ASHRM Hospital and Physician Professional Liability Benchmark report. The 2016 report was released today by Aon Risk Solutions, the global risk management business of Aon plc (NYSE: AON), in conjunction with the American Society for Healthcare Risk Management.
While professional liability claim frequency showed a decrease of one percent annually, new to this year’s study is a focus on the correlation between professional liability and workers’ compensation claims. Aon analyzed data from 34 health care systems participating in both the Aon/ASHRM Hospital and Physician Professional Liability study and the Aon Healthcare Workers Compensation Barometer.
“Risk Managers and Insurance Underwriters seek to find data that describes the general safety environment for a given hospital facility” said Dominic Colaizzo, Chairman of Aon’s National Health Care Practice. “Through the findings compiled by the Aon/ASHRM Hospital and Physician Professional Liability Benchmark, we are now able to address this need. We found that there is, in fact, a correlation between patient safety and worker safety. Health care systems should be encouraged to know that investments in their general safety environment benefit both workers and patients.”
Additionally, the study indicates that health care systems with better Total Performance Scores (TPS), as measured by the Centers for Medical & Medicaid Services (CMS), also tend to have a lower frequency of professional liability claims. TPS measures are facility specific calculations based on a combination of clinical process scores, patient experience scores, outcome scores and efficiency scores. This data supports the importance of measuring quality and safety scores such as TPS as they are not only influential in the CMS Value-Based Purchasing program, but also are indicative of the professional liability claim environment.
The 2016 report examines trends from useful vantage points, including:
Claim Frequency and Severity by Cause of Loss
The benchmark study details average claim severity and frequency by cause of loss, including:
Claim Frequency and Severity by State
The benchmark study includes statistical information specific to 25 states, including state-specific benchmarks for:
Department Specific Statistics
The benchmark study provides benchmark frequency and severity measures for two specific hospital departments, including obstetrics and emergency.
Interaction between Insurance and Self Insurance
Participants in the benchmark study completed a survey indicating how they coordinate commercial insurance with their self-insurance programs. Survey results presented in this report include:
Other Noteworthy statistics from the 2016 Aon/ASHRM Hospital and Physician Professional Liability Benchmark report
Click here to purchase a copy of the 2016 Aon/ASHRM Hospital and Physician Professional Liability Benchmark report.
About the 2016 Aon/ASHRM Hospital and Physician Professional Liability Benchmark report
The database includes 107 U.S. 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 $16.5 billion of incurred losses. The database contains historical claim information for 10 accident years (2006 to 2015). 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 can develop proactive strategies to help reduce risk-related costs and improve related outcomes.
Aon plc (NYSE:AON) is a leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 72,000 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, reinsurance intermediary, captives manager and best employee benefits consulting firm by multiple industry sources. Visit www.aon.com for more information on Aon and www.aon.com/manchesterunited to learn about Aon’s global and principle partnership with Manchester United.
About the American Society for Healthcare Risk Management (ASHRM)
The American Society for Healthcare Risk Management (ASHRM) is a personal 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 healthcare 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.