Technological advancements in the health field should reduce the frequency and severity of insurance claims, but there is a dangerous flip side, according to one expert in the field.
“There is the possibility of increased severity in the event of a technological failure,” Crystal Brown, assistant vice president of Chicago-based CNA HealthPro, said in an interview.
Ms. Brown–who spoke on medical technology exposures at a meeting of the Professional Liability Underwriting Society last month in Chicago–said the increased risks that come with the advantages of technology are an area that medical underwriters are not paying enough attention to, adding that she hoped her talk would give them food for thought.
Ms. Brown said she knew of one case where a computer virus had infected a hospital system, which had an impact on a patient's care. She said she did not know if the consequences had been fatal.
Hospitals, she said, need to have contingency, continuity and disclosure plans in the event of a technological failure.
According to Ms. Brown, electronic medical records should improve the quality of care and patient safety, but pointed out to the PLUS group that questions arise when the system malfunctions or there is down time.
She wondered whether underwriters are up-to-date on the latest equipment, and understand its advantages and disadvantages in pricing, structure and coverage of the risks.
Underwriters, she said, should use hospital risk control departments.
New technology should have a positive impact on loss history and decrease frequency and severity of claims, she said, but whether it will decrease pricing for hospital professional liability insurance is unclear.
Ms. Brown said there most probably will be changes in coverage terms.
Underwriters, she suggested, should establish a task force to track technological advancements in health care and formulate an underwriting guide as well as evaluating the impact on historical loss data.
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