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'Never Events' Responsible for One Out of Six Med Mal Liability Claims, Says Aon
Date:9/29/2008

tions' risk profiles will reflect that successful progress."

Also new to the analysis this year are benchmarks for the frequency of indemnity claim payments, or the amount paid to patients to settle a claim. This standard is important for entities to track as indemnity claims directly drive overall liability costs.

The study includes an analysis of professional liability costs for the surgery, obstetrics and emergency departments. Various supplementary database segments appear in this year's analysis as well, including facility ownership, number of beds and teaching hospitals.

"For the fourth straight year, we are not seeing an increase in the overall number of liability claims," added Larcher. "That said, the not-for-profit segment of the database reflected an increase in claims for the second year."

The Aon Corporation Hospital Professional Liability and Physician Liability Benchmark Analysis, the most comprehensive look at such claims in the U.S. health care industry, was conceived to provide health care risk managers with a better understanding of their cost of risk compared to an industry benchmark. By examining trends in frequency, severity and overall loss costs, health care entities are better able to manage their liability concerns.

More than 100 health care organizations representing more than 1,200 facilities, ranging from small community hospitals to large multi-state publicly traded health care systems, provided loss and exposure data for the study. The hospital professional liability benchmark database includes 77,705 claims representing $9.3 billion of incurred losses, and contains historical claims information for ten accident years (1998 to 2007).

"ASHRM's focus is to deliver programs and resources that help its members improve patient safety and reduce risk, and we are pleased to participate in this important industry benchmarking effort," said Douglas Borg, ASHRM president.

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SOURCE Aon Corporation
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