November / December 2006
NEWS ITEMS FROM SOURCES WORLDWIDE
Pulse
Aon Study Finds Hospital Professional and Physician Liability Claims Stabilizing
Claims management and tort reforms make impact; patient safetyŻand quality-of-care efforts point to future improvements
Insurance claims against doctors, nurses, and other medical professionals have stabilized for the first time in years, according to the seventh annual Aon Hospital Professional Liability and Physician Liability Benchmark Analysis. While that is good news for the medical community, the bad news is that the average size of malpractice claims continues to rise.
The study, which measured 47,735 claims representing more than $4.4 billion of incurred losses in the United States, found that the overall frequency of medical malpractice claims has not increased for the second straight year. While claim frequency is stabilizing, according to the study, the average size (severity) of malpractice claims continues to increase at a rate of 6%. However, the average amount paid to indemnify claimants is increasing at a rate of only 3%, while amounts paid to defend against liability claims are growing at 17% as hospitals invest in claims management.
"The improved frequency rate that first emerged in the 2005 study appears to be sustained through 2006," said Greg Larcher, director and actuary of Aon Risk Consultants and author of the analysis. "Based on study findings, we believe that the impact of past state-level legislative reforms has largely been realized, and we do not expect significant decreases in claim frequency or severity resulting from tort reform in the future unless other states pass legislation that withstands challenges. Patient safety initiatives being implemented today, however, may be critical for sustaining a favorable frequency trend into the future."
This year's study found that a statistically significant relationship exists between mortality and claim frequency in certain segments of the database. For example, after adjusting for patient volume and acuity, Texas hospitals with 200 mortalities in 2004 experienced 6 indemnity claims while hospitals with 150 mortalities experienced 4 indemnity claims. This finding gives an interesting perspective on how changes in quality might affect claim counts.
Added Larcher, "While it is logical to believe that organizations that reduce preventable harm to their patients will also reduce professional liability claim counts and costs, our study takes a first step at proving this true with data. In the long term, the industry would benefit from a more comprehensive measure of quality, beyond mortality, that measures the success of patient safety improvements and their impact on liability costs."
More than 700 healthcare facilities provided loss and exposure data for the benchmark study. These participants range from small community hospitals to large multi-state publicly traded healthcare systems. The study also includes breakouts of claim costs and frequency trends by state and facility type, including university, specialty, long-term acute care and community.
The 2006 Hospital Professional Liability and Physician Liability Benchmark Analysis is co-sponsored by the American Society for Healthcare Risk Management (ASHRM) of the American Hospital Association. To purchase a copy, please dial +1.800.242.2626 and request item #178701. Visit www.aon.com/hpl_study for more information.
Source: Source: Aon Corporation
Center for Healthcare Governance to Develop Quality & Safety Curriculum for Trustee Education
Goal to educate and empower trustees on quality and safety issues
The Center for Healthcare Governance, an affiliate of the American Hospital Association, announced today that they will develop an educational curriculum for Massachusetts hospital trustees that will support their roles and responsibilities in quality and safety improvement. The Center is working with the Massachusetts Hospital Association (MHA) and is supported by a grant from Blue Cross Blue Shield of Massachusetts.
The program will prepare Massachusetts trustees to take a more active role in monitoring and overseeing improvement in the care delivered by their hospitals and healthcare organizations. Goals of the program include educating trustees on quality and safety through live seminars and archived material that demonstrates the effective use of performance measures that increase communication in the board room on these topics. Through interaction, trustees can promote accountability and leadership that ultimately strengthens patient care and safety in hospitals.
"We are extremely excited by this partnership and look forward to sharing the tools and resources of the Center with Massachusetts hospital trustees," said John Combes, M.D., president and chief operating officer for the Center for Healthcare Governance. "Quality improvement and patient safety are priorities to trustees. This opportunity will allow us to improve upon the efforts already in place at many healthcare organizations."
With MHA, Center staff have already begun meeting with hospital trustees, CEOs, and physicians. A pilot program with Massachusetts hospitals will begin by early 2007. As leaders in their community, trustees are uniquely positioned to help develop a culture of safety — benefiting patients and improving the quality of care that their institutions provide.
Source: Source: American Hospital Association
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