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Accrued Professional Liability
 12 Months Ended
Dec. 31, 2011
Accrued Professional Liability [Abstract]  
Accrued Professional Liability

9.    Accrued Professional Liability:

At December 31, 2011 and 2010, the Company's total accrued professional liability of $122.8 million and $111.7 million, respectively, includes incurred but not reported loss reserves of $79.5 million and $71.0 million, respectively, and loss reserves for reported claims associated with self-insured retention amounts through the Company's wholly owned captive insurance subsidiary of $43.3 million and $40.7 million, respectively.

The Company's incurred but not reported loss reserves increased by $8.5 million and $2.8 million for the years ended December 31, 2011 and 2010, respectively. The net increases in reserves for incurred but not reported claims for the years ended December 31, 2011 and 2010, are primarily attributable to the increase in the number of physicians insured due to acquisitions. The increase for the year ended December 31, 2011 is larger than the increase for the year ended December 31, 2010 due to the timing of acquisitions.

 

The activity related to the Company's loss reserves for reported claims for the years ended December 31, 2011, 2010 and 2009 is as follows (in thousands):

 

     Years Ended December 31,  
     2011     2010     2009  

Balance at beginning of year

    $ 40,672      $ 41,355      $ 36,366   

Provision (adjustment) for losses related to:

       

Current year

      18,645        17,256        16,497   

Prior years

      (4,283 )      (4,029 )      (3,519 ) 
  

 

 

    

 

 

    

 

 

  

Total provision for losses

      14,362        13,227        12,978   

Claim payments related to:

       

Current year

      (221 )      (553 )      (568 ) 

Prior years

      (11,526 )      (13,357 )      (7,421 ) 
  

 

 

    

 

 

    

 

 

  

Total payments

      (11,747 )      (13,910 )      (7,989 ) 
  

 

 

    

 

 

    

 

 

  

Balance at end of year

    $ 43,287      $ 40,672      $ 41,355   
  

 

 

    

 

 

    

 

 

  

The net changes in reserves for reported claims for the years ended December 31, 2011 and 2010, are primarily attributable to increases in the current year provision for losses as a result of the increase in the number of physicians insured through the Company's wholly owned captive insurance subsidiary due to acquisitions, offset by claim payments and adjustments to the provision for losses related to prior years resulting from favorable trends in the Company's claims experience.