Description
The 2024 Aon/ASHRM Hospital and Physician
Professional Liability Benchmark report marks the 25th year of
publication of this annual study. This report is based on the data from 113
participating health care systems which collectively comprise 37% of the hospital
exposures in the country.
Our report strives to provide healthcare
systems with a data-based tool for better estimating and understanding their
self-insured medical malpractice costs relative to those for their peers.
Through measurement, analysis, and comparison
of the claim and exposure data, risk managers can develop proactive
strategies to reduce medical professional liability (MPL) related claim
frequency and/or severity and ultimately improve patient and financial
outcomes.
The current report provides the findings of
Aon’s actuarial analyses as well as insights on the following topics:
· Countrywide HPL, PPL, and
GL benchmark claim frequency, severity and loss rates based on this year’s
database of 113 systems.
· The countrywide
severity and loss rate estimates have been developed to $5M per occurrence.
· Forecasted 2025 excess
layer loss rates in $5M increments up to $25 million.
· The effect of the
COVID-19 pandemic on medical malpractice claim frequency and severity.
· An analysis on how
caps on medical malpractice claims have restrained claim values by state.
· An analysis of
hospital exposures including revised exposure relativity factors.
· Healthcare risk management
department characteristics, including insights on risk professionals and Certified
Professional in Healthcare Risk Management (CPHRMs) employed, telemedicine,
home health, and days cash on hand.
· A look at the
insurance structures, alternative risk vehicles, and treatment of allocated
loss adjustment expenses of healthcare entities.
· An analysis of closed
claim statistics including the average indemnity and expense paid by states,
departments, and other demographics.
· Benchmark frequency,
severity, and loss rates by hospital service line, demographics, and size of
hospital.
· Benchmark statistics
for thirty-three individual states that include territory breakouts for
Florida, Illinois, and Pennsylvania. The remaining states have been grouped
together in one of three groups: Low, Medium, and High Cost states. The data volume for each of these geographies
lends itself to credible actuarial analyses while also maintaining
participants’ confidentiality.