Description
The 2023 Aon/ASHRM Hospital and Physician
Professional Liability Benchmark report marks the 24th year of
publication of this annual study. This report is based on the data from 101
participating health care systems which collectively comprise 33% 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 101 systems.
· The countrywide severity and loss rate
estimates have been developed to $5M per occurrence.
· New this year is the addition of 2024 excess
layer loss rates in $5M increments up to $25 million.
· The emergence of telemedicine and how it
affects medical professional liability risk.
· A discussion on the role of captives in
healthcare systems’ risk management strategies.
· 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 increasing percentage of claims settling for greater than $1
million
· Benchmark statistics by hospital service line, demographics, size of hospital system, and
type of claim disposition.
· Benchmark statistics for twenty-nine individual states that include territory
breakouts for Florida,
Illinois, and Pennsylvania. The remaining states have been grouped together in one of three groups:
New England states, Lower Cost states, and Higher Cost states. The data volume for each of these geographies lends itself to credible actuarial
analyses while also maintaining participants’ confidentiality.