Medical malpractice costs remain near historic highs

Healthcare providers continue to experience high but flat medical malpractice costs, according to the annual Aon/ASHRM Hospital and Physician Professional Liability Benchmark report.

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.