The pace of malpractice claims against hospitals is picking up, according to a recent report from Aon Risk Solutions and the American Society for Healthcare Risk Management.
Earlier in the decade, growth in the frequency of claims declined for several years in a row, down to a 1.81% increase for incidents occurring in 2006. The pace has now ticked up for the past three years, to 1.95% for incidents occurring last year, the report says.
It estimates the cost of the 44,000-odd claims arising from incidents occurring last year will top $8.6 billion (that covers hospitals only, not physicians or long-term care facilities.) Obstetrics-related claims alone will run an estimated $1.4 billion.
Erik Johnson, health care practice leader for Aon Risk Solutions’ Actuarial and Analytics Practice, tells the Health Blog it’s not clear why the frequency of claims against hospitals is edging up. Possibilities include a weakening of tort reforms in some states and the recession — he says hard times may make people more likely to file a claim.
Health-care overhaul legislation didn’t affect the forecast, Johnson says. While hospitals may be focused on how that law will impact their business, “they should focus at least one eye on this [liability] expense,” he says.
It’s also possible that as community hospitals increasingly employ physicians, some liability costs may be shifting from doctors to hospitals, he says.
The average loss per claim (including expenses) is rising at a steady 4% annual rate, the report says. It’s expected to be $153,000 for incidents that occurred last year. That stat covers only losses up to $2 million, which is to limit the influence of rare large awards and also to reflect the expenses likely to be borne directly by the hospital — Johnson says most hospitals have a significant deductible and that insurance doesn’t kick in until a payout hits a certain amount.
A full 23% of hospital professional liability costs are associated with health-care acquired infections, health-care acquired injuries, medication errors, objects left in surgery and pressure ulcers, the report says.
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