Aon/ASHRM Hospital and Physician Professional Liability Benchmark Report
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The 2024 Aon/ASHRM Hospital and Physician Professional Liability Benchmark report marks the 25th year of publication of this annual study. This report is based on the data from 113 participating health care systems which collectively comprise 37% of the hospital exposures in the country.
Description
Our report strives to provide health care 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 113 systems.
• The countrywide severity and loss rate estimates have been developed to $5M per occurrence.
• Forecasted 2025 excess layer loss rates in $5M increments up to $25 million.
• The effect of the COVID-19 pandemic on medical malpractice claim frequency and severity.
• An analysis on how caps on medical malpractice claims have restrained claim values by state.
• An analysis of hospital exposures including revised exposure relativity factors.
• Health care 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 health care entities.
• An analysis of closed claim statistics including the average indemnity and expense paid by states, departments, and other demographics.
• Benchmark frequency, severity, and loss rates by hospital service line, demographics, and size of hospital.
• Benchmark statistics for thirty-three individual states that include territory breakouts for Florida, Illinois, and Pennsylvania. The remaining states have been grouped together in one of three groups: Low, Medium, and High Cost states. The data volume for each of these geographies lends itself to credible actuarial analyses while also maintaining participants’ confidentiality.