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Accrued Professional Liability:
 12 Months Ended
Dec. 31, 2012
Accrued Professional Liability:

9.    Accrued Professional Liability:

At December 31, 2012 and 2011, the Company’s total accrued professional liability of $137.0 million and $122.8 million, respectively, includes incurred but not reported loss reserves of $90.6 million and $79.5 million, respectively, and loss reserves for reported claims associated with self-insured retention amounts through the Company’s wholly owned captive insurance subsidiary of $46.4 million and $43.3 million, respectively.

The activity related to the Company’s total accrued professional liability for the years ended December 31, 2012, 2011 and 2010 is as follows (in thousands):

 

     Years Ended December 31,  
     2012     2011     2010  

Balance at beginning of year

    $ 122,847      $ 111,662      $ 109,628   

Provision (adjustment) for losses related to:

       

Current year

      35,441        33,031        27,086   

Prior years

      (8,119 )      (10,099 )      (11,142 ) 
  

 

 

    

 

 

    

 

 

  

Total provision for losses

      27,322        22,932        15,944   

Claim payments related to:

       

Current year

      (569 )      (221 )      (553 ) 

Prior years

      (12,564 )      (11,526 )      (13,357 ) 
  

 

 

    

 

 

    

 

 

  

Total payments

      (13,133 )      (11,747 )      (13,910 ) 
  

 

 

    

 

 

    

 

 

  

Balance at end of year

    $ 137,036      $ 122,847      $ 111,662   
  

 

 

    

 

 

    

 

 

  

The net increases in the Company’s total accrued professional liability for the years ended December 31, 2012 and 2011, are primarily attributable to increases in the current year provision for losses as a result of the increase in the number of physicians insured due to acquisitions and internal growth, 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.