Anticipating and controlling rising malpractice insurance costs
Greve, P.A.
Healthcare Financial Management Journal of the Healthcare Financial Management Association 56(5): 50-55
2002
ISSN/ISBN: 0735-0732 PMID: 12013641 Document Number: 542395
The unprecedented proliferation of large jury awards and settlements in medical malpractice cases over the past few years is expected to continue in 2002 and beyond. As a result, most major malpractice insurance carriers have experienced a deterioration of their loss ratios. Malpractice insurance premiums have skyrocketed, and in some cases, carriers have withdrawn from markets. Healthcare providers are challenged by malpractice-insurance-related expenses. Although providers may find it difficult to negotiate malpractice premium price breaks over the next few years as carriers attempt to restore their profitability, there are some measures they can take to control their malpractice expenses, including selecting a knowledgeable agent or broker, self-insuring, preparing a high-quality renewal submission, reinforcing their commitment to patient safety, and paying attention to carrier financial ratings.