The Hospital and Physician Professional Liability Benchmark Analysis, now in its 14th edition, is published by Aon Risk Solutions in conjunction with the American Society for Healthcare Risk Management. This annual study details the growth of integrated self-insurance strategies and highlights the challenges faced by systems as they pursue cost of risk savings.
According to findings in the 2013 Hospital and Physician Professional Liability Benchmark Analysis, the cost of medical malpractice is growing at the slowest rate in the fourteen year history of the Aon/ASHRM Hospital and Physician Professional Liability Benchmark report.
For more coverage access the full press release
2013 Hospital and Physician Professional Liability Benchmark Analysis press release.
Purchase a copy of the 2013 Hospital Professional Liability and Physician Liability Benchmark
To purchase a copy of the 2013 Hospital Professional Liability and Physician Liability Benchmark Analysis, visit the ASHRM book store.
Calculate Your Facility’s Loss Rate
Risk managers and health care professionals interested in calculating their facility's loss cost may access the Hospital Professional Liability Benchmark Calculator. This online rater calculates 2014 prospective loss rates based on exposures.*
Noteworthy Statistics from the 2013 Aon/ASHRM Hospital Professional Liability Benchmark
- Projected loss rate for hospital professional liability is $2,940 per occupied bed equivalent (OBE) for events occurring in 2014. The frequency of claims is projected to be 1.67 percent per OBE and the severity of claims is expected to be $176,000 per claim.
- Projected loss rate for physician professional liability is $6,030 per class 1 physician for events occurring in 2014. The frequency of claims is projected to be 2.97 percent per class 1 physician and severity of claims is expected to be $203,000 per claim.
- Projected loss rate for hospital general liability is $119 per occupied bed equivalent; The average general liability claim is expected to be $36,000 for claims occurring in 2014.
- Projected loss rate for obstetrics claims occurring in 2014 is $171 per birth; emergency department is $6.16 per visit.
- The hospital professional liability benchmark database includes claims from all US states and provides specific benchmarks for 28 states. Florida ($7,440) and Pennsylvania ($4,720) have the highest projected loss rates for 2014; Indiana, ($800) and Minnesota ($810) have the lowest projected loss rates for 2014.
- Using their excess claims database, The Beazley Group provides analytics detailing the increasing severity of the largest claims by venue and highlighting the disproportionate impact of obstetric claims on large claim trends.
- Data from Aon’s self-assessment tool, the Risk Maturity Index, indicates that hospitals are advanced in their approach to risk but have room to further integrate risk management throughout their organizations.
About the HPL Report
The database includes 118 U.S. health care systems, representing 28 percent of the total U.S. hospital industry. Data collected includes 103,379 non-zero claims, representing more than $16.6 billion of incurred losses. The database contains historical claim information for 10 accident years (2003 to 2012). All ASHRM members were invited to participate in the study, which is designed as a hands-on tool to provide health care risk managers with a better understanding of their cost of risk compared to an industry benchmark. Through measurement, analysis and comparison of the claim and exposure data, risk managers develop proactive strategies to reduce risk related costs and ultimately improve outcomes.
About Risk Maturity Index
The award winning Aon Risk Maturity Index tool was developed by Aon in partnership with the Wharton School at the University of Pennsylvania. It is designed to empower risk and finance leaders to assess the maturity of their organization’s risk management structure and provide insight to support its continued development and implementation. The index measures 40 components of ‘risk maturity’ that are grouped into ten overarching characteristics or statements of best practices. The Index is a web-based survey containing approximately 125 multiple-choice questions focused on observable practices and structures related to corporate governance, management decision making and risk management. More information visit http://www.aon.com/riskmaturityindex.
* All calculations are based on proprietary data and Aon makes no statement on the accuracy of the results and therefore assumes no liability.