XML 81 R15.htm IDEA: XBRL DOCUMENT v2.4.1.9
Accrued Professional Liability
 12 Months Ended
Dec. 31, 2014
Health Care Organizations [Abstract]  
Accrued Professional Liability

9.    Accrued Professional Liability:

At December 31, 2014 and 2013, the Company’s total accrued professional liability of $168.4 million and $158.7 million, respectively, includes incurred but not reported loss reserves of $120.6 million and $110.3 million, respectively, and loss reserves for reported claims associated with self-insured retention amounts through the Company’s wholly owned captive insurance subsidiary of $47.8 million and $48.4 million, respectively.

The activity related to the Company’s total accrued professional liability for the years ended December 31, 2014, 2013 and 2012 is as follows (in thousands):

 

     Years Ended December 31,  
     2014      2013      2012  

Balance at beginning of year

    $ 158,691       $ 137,036       $ 122,847   

Provision (adjustment) for losses related to:

         

Current year

      39,386         41,235         35,441   

Prior years

      (16,125 )       (8,100 )       (8,119 ) 
  

 

 

     

 

 

     

 

 

  

Total provision for losses

      23,261         33,135         27,322   

Claim payments related to:

         

Current year

      (293 )       (741 )       (569 ) 

Prior years

      (13,290 )       (10,739 )       (12,564 ) 
  

 

 

     

 

 

     

 

 

  

Total payments

      (13,583 )       (11,480 )       (13,133 ) 
  

 

 

     

 

 

     

 

 

  

Balance at end of year

    $ 168,369       $ 158,691       $ 137,036   
  

 

 

     

 

 

     

 

 

  

The net increases in the Company’s total accrued professional liability for the years ended December 31, 2014 and 2013, 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.