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The Rapid Growth of APPs and Burgeoning Risk for MPL

Wednesday, March 6, 2024, 11:00 a.m. ET
Join the MPL Association for an in-depth discussion on the proliferation of APPs and the impact of this trend on the future of MPL claims, defense, and loss mitigation. This webinar is FREE for MPL Association members and affiliate partners.

Federal Administrative Actions Impact MPL

While medical liability-related legislative activity has shifted heavily from the federal environment to the states, the same cannot be said for all regulatory activity. Thanks to the McCarran-Ferguson Act, states remain the dominant focus of regulatory matters affecting medical liability insurance.

The State of the MPL Market: Claim Severity Rises, Policy Price Increases Moderate

Every six months, the MPL Association’s Research and Analytics Department issues a report analyzing these metrics with valuable take-aways that offer industry stakeholders insights into the industry’s financial performance.  

Inside Medical Liability

Fourth Quarter 2019

 

 

PERSPECTIVE

MPL Community Looking for a New Normal in a Changing Market

Our industry was founded on the quest for high- quality medical care with an emphasis on risk management, loss prevention, patient safety, data analysis, and a concern for those who provide care for patients.

BY PRESIDENT, BRIAN ATCHINSON

 

There’s a growing undercurrent of change in our industry. As I speak to leaders in medical professional liability around the world, I’m struck by the dynamic marketplace and all the forces around us that will be shaping our future.

The delivery of healthcare is evolving rapidly. Demand for healthcare is up, partially due to a growing, aging population. More and more patients are turning to nurse practitioners, physician assistants, and other professionals for their care. And with this increased responsibility comes greater exposure for these clinicians.

Technology and telemedicine are reshaping the
ways patients receive care. While these new methods are
important for access, particularly for those in under-
served areas, we continue to look for the unintended consequences— cyber security, privacy concerns, the role of electronic medical records—and how we can best manage the risks on the horizon.

Health systems, hospitals, and large-group practices will keep expanding their continuum of care within their markets, and consolidations will continue. All of these new scenarios will (and are) creating challenges for reimbursement systems.

For the MPL industry overall, we’ve seen a soft market for a while now. Yet there are signs from some segments—hospitals in particular—that the market is hardening. And a newly released annual rate survey predicts that firming rates indicate a turn from the market’s decade-plus period of soft pricing toward a hard market with annual rate increases.

With these forces swirling around us, we’re also facing a changing and sometimes challenging legislative and regulatory backdrop. In Washington, D.C., lawmakers have passed little legislation as they increasingly turn their attention to 2020 and congressional and presidential elections. In the background of all this inaction is a concerning development—the release of a report from the Congressional Budget Office analyzing the financial impact of federal tort reforms. The highly flawed paper estimates the financial benefits of MPL reforms to be approximately half of what had previously been predicted, a conclusion that was challenged by the MPL Association. This one- sided analysis will not be the last word on this important topic with the Association and other stakeholders considering a thoughtful, impactful course of action.

 

There have been a few surprises in states throughout the U.S. this year that could impact MPL insurers and those they insure. For example, after failing in their last attempt to undo the Medical Injury Compensation Reform Act (MICRA), opponents of reasonable liability reform in California are trying again to dramatically increase the cap on noneconomic damages that has provided a stable medical liability market in that state for more than 40 years. In addition, the Kansas Supreme Court issued a ruling that the state’s cap on damages for noneconomic injuries in personal injury lawsuits was unconstitutional, a move that could portend increased awards—and rates—in the future.

By contrast, some states improved the environment for MPL and tort reform, specifically Florida with positive changes that will hopefully improve the judicial and litigation climate in that state.

As with any industry, success comes through the ability to anticipate, plan, and apply multifaceted approaches. MPL organizations are implementing risk and financing solutions for integrated delivery systems and creatively looking at how to address ongoing and emerging needs. Diversity will be key with companies looking not only at competitive pricing but considering value strategies for their insureds, offering education, risk management services, business operation solutions, and other creative additions to their services.

Yet while healthcare, markets, technology, and legislative environments may change, we still operate from a long-held guiding principle. Our industry was founded on the quest for high-quality medical care with an emphasis on risk management, loss prevention, patient safety, data analysis, and a concern for those who provide care for patients. The MPL Association continues to bring people together to share knowledge on these and other key issues, and to offer information and data to help companies stay on top of trends and best practices. The Association continues to be your eyes, ears, and voice on national issues of importance.

American physician, neuroscientist, psychoanalyst, writer, and inventor John Lilly said,“Our only security is our ability to change.” By adapting to changing paradigms both in the U.S. and around the world, the MPL community is creating a new future. One final note—we have been fortunate to have Dana Murphy as editor of Inside Medical Liability for the last 13 years. This will be her final issue and we want to extend our thanks for her tremendous work over the years. We wish Dana all the best in the future.