ABSTRACT
Financial reporting of medical malpractice self-insurance is evolving. The Financial Accounting Standards Board Accounting Standards Codification Section 954-450-25 provides guidance for accounting and financial reporting for medical malpractice. Discounting of medical malpractice liabilities has been reassessed in recent years. Malpractice litigation reform efforts continue in several states. Accountable care organizations could increase the frequency of medical malpractice claims because of patients' heightened expectations regarding quality of care.
Subject(s)
Accounting/standards , Disclosure/legislation & jurisprudence , Insurance Coverage/legislation & jurisprudence , Insurance, Liability/legislation & jurisprudence , Malpractice/legislation & jurisprudence , Accountable Care Organizations , Insurance Claim Reporting/trends , Insurance Coverage/economics , Insurance Coverage/trends , Insurance, Liability/economics , Insurance, Liability/trends , Liability, Legal , Malpractice/economics , Malpractice/trends , State Government , United StatesABSTRACT
FASB ASU No.2010-24, Healthcare Entities (Topic 954): Presentation of Insurance Claims and Related Insurance Recoveries changes how healthcare entities present medical malpractice liabilities on financial statements. Healthcare CFOs may need the assistance of their auditors and actuaries to ensure that ASU 2010-24 is appropriately implemented. Actuaries need to estimate the recoverable asset, using methods such as historical loss experience, increased limits factor, and commercial premium.
