Statistical models for medical malpractice liability losses



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Health-care providers - typically physicians, surgeons, and hospitals - may be liable for damages arising out of the rendering of, or failure to render, professional services when these services depart from an accepted standard of care and result directly in injury to the patient. Medical professional liability insurance provides protection against claims of "medical malpractice" arising from such injuries. In the early 1970s, the frequency and severity of medical malpractice losses began to rise at alarming rates. The so-called "medical malpractice crisis" gained national prominence by 1974-75, generating widespread discussion in state legislatures, the Congress, and the press. Resulting changes in the medical malpractice insurance market have made it increasingly important to be able to meaningfully evaluate the risk of a small group of health-care providers or even the risk of a single provider (e.g., an individual hospital). The purpose of this dissertation research is to try to identify factors which influence the frequency and severity of medical malpractice claims. These factors include characteristics of the hospital and its environment, characteristics of the patient, and characteristics of the alleged injury. Two statistical models are developed, one for paid claim frequency and one for paid claim severity (settlement value). [...]



Physicians' malpractice insurance--Mathematical models, Malpractice insurance--Mathematical models