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Accrued Professional Liability
 12 Months Ended
Dec. 31, 2015
Health Care Organizations [Abstract]  
Accrued Professional Liability

9.    Accrued Professional Liability:

At December 31, 2015 and 2014, the Company’s total accrued professional liability of $202.5 million and $168.4 million, respectively, includes incurred but not reported loss reserves of $142.4 million and $120.6 million, respectively, and loss reserves for reported claims associated with self-insured retention amounts through the Company’s wholly owned captive insurance subsidiary of $60.1 million and $47.8 million, respectively.

 

The activity related to the Company’s total accrued professional liability for the years ended December 31, 2015, 2014 and 2013 is as follows (in thousands):

 

     Years Ended December 31,  
     2015      2014      2013  

Balance at beginning of year

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

Assumed liabilities through acquisition

      35,968         —           —     

Provision (adjustment) for losses related to:

         

Current year

      39,204         39,386         41,235   

Prior years

      (25,797 )       (16,125 )       (8,100 ) 
  

 

 

     

 

 

     

 

 

  

Total provision for losses

      13,407         23,261         33,135   

Claim payments related to:

         

Current year

      (1,382 )       (293 )       (741 ) 

Prior years

      (13,835 )       (13,290 )       (10,739 ) 
  

 

 

     

 

 

     

 

 

  

Total payments

      (15,217 )       (13,583 )       (11,480 ) 
  

 

 

     

 

 

     

 

 

  

Balance at end of year

    $ 202,527       $ 168,369       $ 158,691   
  

 

 

     

 

 

     

 

 

  

The net increases in the Company’s total accrued professional liability for the years ended December 31, 2015 and 2014, are primarily attributable to liabilities assumed through an acquisition and 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.