Articles: Medical Errors
Medical malpractice claims decline, severity rises: New study
released
 A
study released in October 2005 by Aon and American Society of
Healthcare Risk Management reported on the frequency and severity
of medical malpractice claims. Based on 52,959 non-zero claims
representing $4.5 billion of incurred loss for ten accident years,
the data represented 10 percent of the hospital market ($1 billion
of $10 billion) and 15 percent of the alternative (self insured)
market ($1 billion of $6.7 billion.) Both open and closed claims
were studied. Key findings of the study included:
• Overall
the frequency of claims against healthcare facilities is decreasing.
In 2004, there were 3 claims for each 100 acute care bed equivalents,
down from 3.3 percent in 1999. The analysts hypothesize that self-insured
healthcare systems have a greater financial incentive to reduce
the cost of risk, make investments to improve the quality of care,
and reduce medical errors. Consumer attitudes may also be changing
as result of the enormous media attention given to the physician
insurance crisis and how it relates to availability of healthcare
at the local level.
• The
frequency of claims against physicians was also declining, based
on data from the National Practitioner Data Bank. The frequency
of claims against physicians had dropped from 9.3 percent in 1999
to 8.1 percent in 2004.
• Four
states - Texas, Florida, California, and Pennsylvania - all of
which had some form of tort reform, led the frequency decline.
• The
severity of institutional claims continues to grow from a low
of 102,000 to $172,000 in 2004. (This data excludes settlements
or awards yielding more than $2 million.)
• Claims
against physicians were projected to have a severity of $146,000
in 2006. The severity per claim has remained fairly constant over
the last ten years.
• The
2006 loss cost for each physician was projected to be $12,000,
up from $10,200 in 2004. Loss costs for physicians have remained
fairly constant since 1997, when the cost was $11,200.
• Based
on trends, the loss cost per hospital bed for 2006 was $5,800,
up from $2,900 in 1997.
• Based
on solid data, the loss costs were increasing in Tennessee, North
Carolina, Ohio, and Maryland.
• Allocated
loss adjustment expenses (defense legal fees) were projected to
represent 20 percent of the claim costs in 2006.
• Using
ten years of data, public hospitals were found to have the highest
percentage of claims of more than $1 million, with 39 percent
of the exposure and 43.4 percent of the total number of large
loss counts. Specialty hospitals had the least number of large
loss claims.
References
AON/ASHRM
Hospital Professional Liability and Physician Liability 2005 Benchmark
Analysis, released October 24, 2005. The full study is available
for purchase from American Society
of Healthcare Risk Management.
Med
League provides board certified physicians to screen
medical malpractice cases for merit, as well as locates expert
witnesses for attorneys. Contact
us about how we can assist you with your claim.
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