Hospital Professional Liability Rates Stable For Now

Hospital professional liability rates appear to be holding steady. A 2014 report by Aon/American Society of Health Care Risk Management projects liability rates will actually be lower than the previous year’s figures. It also said that the cost of medical malpractice is growing at its slowest rate in the 15-year history of the report.

To determine the figures, the study looks at projected losses for hospitals and physicians. It also considers the frequency of medical malpractice claims compared to patient satisfaction scores. Those hospitals scoring highly in patient surveys tend to have significantly fewer malpractice claims, the findings say.

The annual report, released in November, expects the hospital professional liability loss rate in 2015 to be $2,870 per occupied-bed equivalent (OBE). That figure is down from $2,940 forecasted for 2014. It also predicts that claims will average $170,000, or nearly 3.5 percent less than last fall.

The study also predicts the hospital general liability rate will be $125 per OBE, with the average claim expected to be $38,000.

Hospital liability insurance covers all professional care given at a hospital, including acts, errors and omissions. It is usually written with a general liability policy so as to avoid missing gray-area situations. The insurance ordinarily covers all hospital employees.

Predicted hospital professional liability numbers appear to be not only stable but perhaps even falling. Improving patient satisfaction could help decrease those numbers even further.