The findings released this week, show the average cost of closed claims with indemnity payment reached an historic high of $463,000 in 2012 and has remained elevated since. Last year in 2014, it stood at $459,000.
Additionally, the report found the severity of average claims in tort reform states, including California, has been increasing faster than elsewhere. In 2008, only 2.2 percent of claims from tort reform states exceeded $2 million. By 2013, the proportion had risen to 4.1 percent and last year it jumped up to 5 percent.
Additionally, the report cites a number of reasons why healthcare providers may be more at risk than other organizations from data breaches, including the high value of stolen medical records and the extensive sharing of data between healthcare providers and contractors.
The near historical levels of severity for malpractice claims and the growing threats from data breaches mean challenges of managing risk at healthcare organizations continue to evolve.
To purchase a copy of the 2014 Aon/ASHRM Hospital Professional Liability and Physician Liability Benchmark report, visit the ASHRM online store.
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.