KANSAS CITY, Mo., May 12, 2011 /PRNewswire/ -- A new report from Lockton, the world's largest privately owned insurance broker, examines whether the practice of disclosing medical errors when they occur increases or decreases liability costs for health care organizations.
The Lockton report describes the 2009 analysis of the University of Michigan Health System's medical disclosure approach (by Richard Boothman, et. al.) which provides evidence that disclosure makes financial sense for health care organizations:
Fewer lawsuits: 38.7 fewer lawsuits after program implementation
Faster resolution: Claim resolution was 1.36 years before program implementation, and 0.95 after
Lower costs: Average cost per lawsuit decreased from $405,921 to $228,308
The Lockton report also offers dissenting views from David M. Studdert, currently Federation Fellow at the Centre for Health Policy, Programs & Economics at the Melbourne School of Population Health.
"Advocates for transparency are adamant that the reason for disclosure of medical errors is not cost savings, but the larger goal of patient safety," said Lamo. "Whether additional research will eventually confirm or repudiate Studdert's research remains to be seen. We do know disclosure of medical errors has been increasingly accepted and expected by caregivers, patients, and others interested in patient safety."