The number of medical malpractice claims is falling, but their severity is rising, according to a report released Oct. 18. A news release on the report says the frequency of malpractice claims decreased by 1 percent in the past year, while the severity of claims is growing at a rate of 7.5 percent annually.
Aon Corp., a Chicago-based provider of risk management services, issued the report, the 2005 Hospital Professional Liability and Physician Liability Benchmark Analysis. A Wall Street Journal article on the report noted Aon had conducted the study each year since 2000.
"This is the first time in the history of the study the frequency trend decreased in claims for both hospitals and physicians," the news release said.
"We believe that legislative reforms in several states over the last few years are contributing to the reduction in claims," said Greg Larcher, assistant director and actuary of Aon Risk Consultants and author of the analysis. "In addition, the medical malpractice availability and affordability crisis of the last several years has resulted in a rapidly growing alternative market. Health care systems now have a greater financial incentive to reduce their cost of risk."
Greg Morris, chief operating officer of Aon Healthcare, said, "Actions taken by health care systems to improve quality of care and a heightened awareness of how quality care and patient safety tie directly to the cost of risk have also played a role in the decline."
The Journal article highlighted the trend toward self-insurance. "When you insure yourself, you have much greater financial incentive to reduce medical errors because every dollar you save is your own dollar," Larcher told the paper.
The American Society of Healthcare Risk Managers co-sponsored the report.
