Aon prepared the report, “2011 Hospital and Physician Professional Liability Benchmark Analysis,” in conjunction with the American Society for Healthcare Risk Management. The study details the growth of integrated self-insurance strategies and highlights the challenges faced by systems as they pursue the cost of risk savings.
According to the report, as health systems collaborate more closely with physicians, they will face significant risk management challenges associated with integrated physician-hospital medical malpractice and professional liability risks.
“Our findings reflect that when hospitals team up with physicians, they are effectively effectively doubling down on medical malpractice risk,” said Erik Johnson, author of the analysis and Health Care Practice leader for Aon Global Risk Consulting in a news release. “As a result, medical malpractice for new physician-hospital arrangements will be a critical issue.”
Aon suggests that, in addition to regulatory scrutiny, risk-related issues such as the following must be considered:
• Experience rating variables
• Allocation strategies
• Tail coverage issues
• Capital requirements
• Increased premium flow
• Financial reserve methodologies
• Coordinated defense strategies
• Clinical risk management efficiencies
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