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Related Experiment Videos

The case for self-insurance.

M D Olson

    Trustee : the Journal for Hospital Governing Boards
    |April 11, 1981
    PubMed
    Summary
    This summary is machine-generated.

    Hospitals facing rising professional liability insurance costs may consider self-insurance. This approach necessitates closer board involvement in managing medical practice quality to mitigate risks effectively.

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    Area of Science:

    • Healthcare Management
    • Risk Management
    • Medical Law

    Background:

    • Escalating costs of primary professional liability insurance present a significant financial challenge for hospitals.
    • Traditional commercial insurance models may not be cost-effective for all healthcare institutions.

    Purpose of the Study:

    • To explore the implications of hospital self-insurance for professional liability risk.
    • To highlight the critical role of board oversight in self-insurance strategies.

    Main Methods:

    • Analysis of the financial and operational considerations of self-insurance versus commercial insurance for professional liability.
    • Review of governance structures and board responsibilities in risk management.

    Main Results:

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    • Self-insurance can offer advantages over commercial insurance in managing professional liability risk.
    • A key outcome of self-insurance is the requirement for enhanced board engagement in medical quality assurance.

    Conclusions:

    • Hospitals should evaluate self-insurance as a strategy to manage rising professional liability costs.
    • Effective implementation of self-insurance mandates increased board-level involvement in overseeing the quality of medical care.