Liability claims stabilizing, but size of average claim growing

While the frequency of hospital professional liability claims was unchanged for the second straight year in 2006, the size of the average liability payment increased 6%, according to the latest annual study by Aon and the American Society for Healthcare Risk Management. Study author Gregory Larcher of Aon states: “We believe that state level legislative reforms are largely responsible for the drop in frequency experienced in the recent past …[and] that patient safety initiatives being implemented today will be critical for sustaining this flat frequency trend in the future.”

The data indicate that the increase in average claim size “is more heavily influenced by the growth in expenses associated with defending the claims than the growth in claim payments going to indemnify claimants.” Results will be reported Oct. 31 at ASHRM’s Annual Conference in San Diego. ASHRM is an American Hospital Association personal membership group for risk management and related professionals.