Health care reform is also bringing changes to professional liability insurance for doctors and hospitals. The daily risks most physicians and hospitals face are in the process of reshaping. According to the Insurance Journal, loss rates for physicians and hospitals are increasing per 2013 statistics.
Projected loss amounts for hospitals, per occupied bed, are over $3,000, while loss rates for physicians are $7,500 per doctor. Frequency of claims equal a projected 3.81 percent per physician and 1.93 percent per occupied bed equivalent (OBE).
Claims costs on average are projected to reside around $157,000 per claim for hospitals and approximately $197,000 for physicians. These statistics will vary depending on the services provided by a particular hospital or a physician’s respective specialty. For example, the loss rate for obstetricians is $193 per birth, as compared to $124 per surgery for in-patient surgical procedures.
In accordance, professional liability rate benchmarks are changing, varying by state. The provisions of the Affordable Care Act (ACA), commonly called “Obamacare,” are also contributing to the changes in professional liability rates. For example, Massachusetts now has a law mandating a 189-day “cooling off period” to allow providers to close contentious events, offer apologies and negotiate settlement compensation.
If you’re a healthcare provider and want to learn more, contact Chivaroli & Associates Insurance Services, experts in insurance and risk management for the healthcare industry, including professional liability.
Chivaroli and Associates Insurance Services is a full-service brokerage firm specializing in the custom-design and placement of insurance and alternative risk funding solutions for your healthcare organization.