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2023 Hospital and Physician Professional Liability Report

2023 Aon/ASHRM Hospital and Physician Professional Liability Benchmark Analysis

Aon is pleased to release the 24th annual edition of the Aon/ASHRM Hospital and Physician Professional Liability Benchmark Analysis. Similar to prior years, Aon’s National Healthcare practice has supported the production of this benchmark report which serves to inform the healthcare industry on medical professional liability claim cost trends.

The report analyzes this year’s hospital professional liability (HPL) and physician professional liability (PPL) claims database that consists of nearly 96,000 non-zero claims that occurred between 2013 and 2022 and are worth $20.4 billion in incurred losses. In addition, the database also includes 14,200 non-zero general liability (GL) claims that represent $509 million in incurred losses that occurred between 2013 and 2022.

This report provides actuarial and underwriting insights on:

  • 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.

About the Benchmark

This benchmark study is produced under a co-marketing agreement between Aon and The American Society for Health Care Risk Management (ASHRM). Participation in this benchmark was open to all ASHRM members.

The study is designed as a hands-on tool to provide healthcare 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 and other stakeholders are able to develop proactive strategies to reduce risk-related costs and improve claim outcomes.

We are grateful to benchmark participants for their interest in engaging with us on this survey and for making the time and effort to provide their data and responses to us

If you would like to participate in future benchmarking studies or have any questions, please contact us at [email protected].

Purchase the 2023 Report

To purchase a copy of the 2023 Hospital and Professional Physician Liability Benchmark Analysis, visit the ASHRM Bookstore.

Access the Executive Summary of the 2023 Benchmark

To view the report Introduction, Letter to Readers and Executive Summary sections, access the Executive Summary (PDF).

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