Data from 1,600 hospitals from 1997 through 2007 shows that medical malpractice claims are declining slightly and the average amount per claim has stabilized, reports Zurich, the hospital and healthcare provider insurer.
The fifth annual benchmarking report on claims trends in the healthcare industry from Schaumburg, IL-based Zurich shows that claims severity—the average amount per claim —has stabilized. The average annual rise over the past 11 years is 4%.
Teaching and children’s hospitals have higher claim severity than acute-care community hospitals and outpatient facilities. Non-profit hospitals have the lowest severity; and among non-profits, faith-based institutions have the lowest severity of all, Zurich said.
"It’s interesting to note that severity does continue to rise among claims valued under $1 million, which are the claims considered more typical within an institution's loss experience," said Leo Carroll, head of Healthcare-Specialty Products, Zurich North America Commercial. "While the most severe claims (those valued above $1 million and $5 million) have stabilized overall, the frequency of those large losses has increased slightly."
Carroll said the most severity prone states continue to be New York, Illinois, and Pennsylvania. "We’re continuing to monitor the impact to claim activity by changes in tort reform, patient safety initiatives, and use of technology to improve quality of care," he said.
While tort reform efforts to reduce malpractice lawsuit threats, such as those suggested in the Affordable Care Act, might have limited impact on reducing costs, other efforts, such as a move away from the fee-for-service system of reimbursement may contribute to further declines, according to a report published in last month's Health Affairs.
See Also:
Opinion: Malpractice Methodology
Tort Reform's Impact on Lowering Medical Malpractice Litigation Costs May Be Limited
Malpractice Data Analysis Offers Window into Surgical Error
Top 10 Most Costly, Frequent Medical Errors
John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.