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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