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Insurance Industry Study Shows That Hospital Malprace Claims at an 8-year Low


Posted on Oct 06, 2007

A new 2007 insurance industry study shows that medical malpractice claims against hospitals are at an 8-year low. The study commissioned by Aon Corp. in conjunction with the American Society for Healthcare Risk Management shows that , contrary to those who are pushing for laws to limit a citizen's right to be paid for damage caused by hospital malpractice, there is no "malpractice crisis". Medical malpractice claims , both in terms of frequency and severity, against hospitals of all sizes that that cover their primary professional liability risks through alternative risk-financing measures are at eight-year lows, according to the new study. The frequency of claims for the 1,000 facilities—part of 80 health care organizations—that participated in the study did not increase for the third consecutive year, reports the “2007 Hospital Professional Liability and Physician Liability Benchmark Analysis.” The report is published by Chicago-based Aon Corp. in conjunction with the American Society for Healthcare Risk Management. In addition, the severity of losses over the past year increased 3%, the lowest increase over the eight years that Aon and ASHRM have produced the report. Claim severity has fallen sharply over the past several years, from 8% in the 2004 study, to 6.4% in 2005, to 6% in 2006. Obstetrics claim frequency per 10,000 births fell to 6.2 in 2006 from 9.4 in 2001. Claims per 100,000 emergency department visits dropped to 3.4 last year from 5.8 in 2001, according to the report. Based on those figures, Aon , one of the country's largest insurance brokers, is advising hospital risk managers to anticipate the lowest increase in malpractice insurance rates since it began issuing such reports. This new malpractice insurance industry study shows how the "tort reformers" distort the truth when issuing their propaganda to mislead the American public. It is important to note that this new report was not prepared by trial lawyers, but by the insurance industry. There is no malpractice crisis, the system is working well and there is no reason to destroy our civil justice system which has served the public so well for over a hundred years.

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