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Aon Corporation Study Finds Hospital Claims at New Lows
Date:10/2/2007

se in the frequency of claims. Since the last edition of the study, the trend in the severity of claims has been cut in half. Liability losses are projected to be just three percent higher in 2008, down from six percent in the 2007 projection. The resulting loss cost trend is the lowest in the eight-year history of Aon's published advisory benchmarks.

"We continue to recognize improvements in the underlying claims environment and have enhanced our ability to measure the impact of the improvement on claims costs," said Greg Larcher, director and actuary of Aon Global Risk Consulting and author of the analysis. "I expect many hospitals to realize lower liability expense in 2008 as hospitals adjust to the new cost environment."

The 2007 study introduces benchmark statistics for the obstetrics and emergency departments. More than 800 facilities that experienced approximately 700,000 births and 16 million emergency department visits provided historical loss information for these measures.

"Since many of the patient safety initiatives being implemented focus on obstetrics and emergency departments, it is important to have industry benchmarks available to measure their effectiveness," said Frank Dodero, senior vice president of Aon Healthcare.

The study found that the number of claims per 10,000 births decreased from 9.4 in 2001 to 6.2 in 2006 while the number of claims per 100,000 emergency department visits dropped from 5.8 to 3.4 in that same period.

The report includes a case study of a multistate hospital operator where similar improvements were linked to patient safety initiatives. In obstetrics, fetal heart monitoring and a focus on high-risk deliveries were found to be contributing factors in claim reduction. The assessment of high-risk presentations such as chest pain in patients over 50 and abdominal pain in all patients contributed to the reduction of claims in the emergency department.

In addition, the study found that the na
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SOURCE Aon Corporation
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