Ohio Department of Insurance Releases Closed Claim Data Report – Northeast Ohio Still Leading the State in Claims Filed |
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Although the latest closed claim report from the ODI showed that the number of medical malpractice claims filed in 2006 was down from the filings in 2005, the average payout for claimants rose in the last year. The latest report shows that 794 of the 4,004 total claim resulted in awards worth over $228 million, resulting in an average payout of about $288,000. The latest report also showed that one-fifth of the medical malpractice claims filed in 2006 were closed with no payments to claimants – the exact same amount as the year before. The ODI report also showed that while most medical malpractice claims closed with no payments to claimants, almost ALL of the claims generated expenses for investigation and defense. The number of claims reported to have allocated loss adjustment expense (ALAE) – (i.e. costs of investigation and defense counsel fees and expenses) was 3,433. These expenses totaled $88,131,139, resulting in an average of $25,672 per claim. In the 2005 report the average ALAE was $24,443. So the bottom line is that even though claims are down - the cost to investigate and defend a claim even if it is determined there is no claim and the claim is closed with no payment has increased. Nearly half of the claims, 1,896, came from Northeast Ohio. Of these, one-fifth or 377, resulted in indemnity payments totaling $101,699,092. In addition, almost half of the total dollar amount paid to claimants statewide in 2006 arose from Northeast Ohio claims. However, Northwest Ohio had the highest average paid indemnity of $365,007 while Northeast Ohio had an average paid indemnity of $269,759. Once again, the good news is that tort reform appears to be working in Ohio. Based upon this latest report overall payment are trending downward, however, the data in this report clearly shows that Northeastern Ohio continues to generate the highest number of claims. In addition, physicians in Northern Ohio are still paying some of the highest rates in the state as outlined in another recent ODI report outlining a comparison of medical malpractice rates across the state. The AMCNO continues to advocate for the use of an alternative dispute resolution versus the traditional tort reform system. Members interested in viewing the entire ODI Closed Claim report may go to the following link: |
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