Hospital Liability Claim Frequency Stable, Slight Decrease in Severity from 2009 to 2010

The overall frequency of hospital liability claims has stabilized at approximately 1.8 claims per 100 occupied bed equivalents, according to the results of the 2013 Zurich Insurance Group annual benchmarking report on U.S. claims trends in healthcare. In the report, Zurich suggests that this will essentially continue through report year 2011 with a projected frequency of 1.9 claims per 100 occupied bed equivalents. Zurich’s analysts mention that the significant and sustained impact of Texas tort reform has clearly had an impact on claims, as the state’s frequency dropped significantly the year after the reform was enacted in 2003 and remains well below the national average. This year’s analysis of claims severity identifies an increase in the overall average claim severity since 2006 but notes that severity for 2010 has decreased by about 4% from 2009 levels (see the November 21, 2012, HRC Alerts).