NU Online News Service, Oct. 19, 3:58 p.m. EDT

Hospitals should get ready for a reversal of fortune when it comes to liability claims.

Though claims against hospitals declined for a good part of the last decade, a new analysis from Aon Risk Solutions concludes that the frequency of claims against hospitals is on the way up.

"Keep an eye on your own data; look at your benchmarks," advised Erik Johnson, leader of Aon's health care practice and author of the analysis, "Hospital Professional Liability and Physician Liability Benchmark Analysis."

Mr. Johnson said that tort reform, a focus on patient safety and technology, and overall sympathy toward health care providers drove the drop in frequency, which took some time to realize because of the long-tail nature of the claims.

"Now there has been no new tort reform and existing reforms have eroded," Mr. Johnson observed.

The health care reform law offers no new tort reform and the economy is also playing a role, he noted.

"People are more likely to make a claim," Mr. Johnson said. "Grievances are up. That is normally a leading indicator."

Stressed incomes impact the likelihood of someone filing a claim, he added.

Next year, hospitals can expect loss rates--the cost of a medical malpractice claims per hospital bed--to increase $150 from $3,130 in 2010. The rate in 2011 is expected to be $300 more than 2009's rate of $2,980, said Aon, which has been putting out the analysis for 11 years.

The increase of frequency and severity is likely to increase liability costs at a rate higher than general inflation.

According to the report, hospitals expected more than 44,000 claims, costing more than $8.6 billion. Claims from the obstetrics unit and the emergency department make up more than 25 percent of that expense, Aon said.

Special Reports /

Aon: Hospitals Can Expect Liability Claim Frequency To Rise

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