Aon/ASHRM Hospital and Physician Professional Liability Benchmark Report
The Aon/ASHRM Annual Hospital and Physician Professional Liability Benchmark report provides health care systems with a data-based tool for better estimating and understanding their self-insured medical malpractice costs based on data collected from participating health care systems.
The 2023 Aon/ASHRM Hospital and Physician Professional Liability Benchmark report marks the 24th year of publication of this annual study. This report is based on the data from 101 participating health care systems which collectively comprise 33% of the hospital exposures in the country.
Our report strives to provide health care systems with a data-based tool for better estimating and understanding their self-insured medical malpractice costs relative to those for their peers.
Through measurement, analysis, and comparison of the claim and exposure data, risk managers can develop proactive strategies to reduce medical professional liability (MPL) related claim frequency and/or severity and ultimately improve patient and financial outcomes.
The current report provides the findings of Aon’s actuarial analyses as well as insights on the following topics:
• Countrywide HPL, PPL, and GL benchmark claim frequency, severity and loss rates based on this year’s database of 101 systems.
• The countrywide severity and loss rate estimates have been developed to $5M per occurrence.
• New this year is the addition of 2024 excess layer loss rates in $5M increments up to $25 million.
• The emergence of telemedicine and how it affects medical professional liability risk.
• A discussion on the role of captives in health care systems’ risk management strategies.
• Health care risk management department characteristics, including insights on risk professionals and Certified Professional in Healthcare Risk Management (CPHRMs) employed, telemedicine home health, and days cash on hand.
• A look at the insurance structures, alternative risk vehicles, and treatment of allocated loss adjustment expenses of health care entities.
• An analysis of closed claim statistics including the increasing percentage of claims settling for greater than $1 million
• Benchmark statistics by hospital service line, demographics, size of hospital system, and type of claim disposition.
• Benchmark statistics for twenty-nine individual states that include territory breakouts for Florida, Illinois, and Pennsylvania. The remaining states have been grouped together in one of three groups: New England states, Lower Cost states, and Higher Cost states. The data volume for each of these geographies lends itself to credible actuarial analyses while also maintaining participants’ confidentiality.