The goal of our annual study is to provide health care systems with a business intelligence tool for better estimating and understanding self-insured medical malpractice costs.

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:
• Listing of the top 10 most frequent causes of professional liability claims
• Listing of the top 10 most severe causes of loss.  

Claim Frequency and Severity by State
The study includes statistical information specific to 25 states, including state-specific benchmarks for:
• The frequency and severity of claims within these states
• The average indemnity payments and expenses for claims recently closed within the states

Department Specific Statistics
The benchmark study provides benchmark frequency and severity measures for two specific hospital departments, including obstetrics and emergency.
• Obstetrics claims are characterized by large indemnity payments and a slow time to closure
• Emergency department claims are characterized by higher average indemnity and lower average expense compared to overall claims

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:
• Attachment points and total insurance limits for health care systems
• Use of self-insurance for coverage of employed providers

Other Noteworthy statistics from the 2016 Aon/ASHRM Hospital Professional Liability Benchmark report
• Projected loss rate for hospital professional liability is $2,620 per occupied bed equivalent (OBE) for events occurring in 2017. The frequency of claims is projected to be 1.55 per 100 OBE and the severity of claims is expected to be $169,000 per claim.
• Projected loss rate for obstetrics claims occurring in 2017 is $178 per birth and emergency department is $5.80 per visit.
• Projected loss rate for physician professional liability is $5,450 per class 1 (internal medicine) physician for events occurring in 2017. The frequency of claims is projected to be 3.01 per 100 class 1 physicians and the severity of these claims is expected to be $181,000 per claim.
• Projected loss rate for hospital general liability is $122 per OBE; the average general liability claim is expected to be $38,000 for claims occurring in 2017.