2020 Aon/ASHRM Benchmark Report: Risk Management Staffing Data; Increasing Loss Rates, Severity
October 28, 2020 | Risk Management News
Health systems' risk management departments employ an average of 1.5 full-time equivalents (FTEs) per 100 occupied beds, and "at least 70% of the organizations maintain at least one Certified Professional in Healthcare Risk Management," said Kanika Vats, FCAS, MAAA, MBA, director and actuary, Aon Global Risk Consulting, speaking October 13 at the American Society for Health Care Risk Management (ASHRM) 2020 annual conference. Vats presented highlights from Aon/ASHRM's 2020 Hospital and Physician Professional Liability Benchmark Analysis. For hospital professional liability, the estimated loss rate, when excluding claims over $2 million per occurrence, is $3,740 per occupied bed equivalent for 2020 and is increasing by 3% annually. Fortunately, "the frequency trend is flat," said Vats, at an estimated 1.64% per occupied bed equivalent in 2020. "Claim severity, on the other hand, has been growing," said Vats, for a projected severity of $228,000 in 2020. She added, "In prior years, we had estimated severity to be growing by 2%, but this year the underlying data shows that severity is growing at a faster clip of 3% annually." For physician professional liability, "on average, providers are estimated to spend $5,640 per class I FTE," excluding claims over $2 million, said Vats.