Accrued Professional Liabilities

12 Months Ended

Dec. 31, 2017

Health Care Organizations [Abstract]

9. Accrued Professional Liabilities:

At December 31, 2017 and 2016, the Company’s total accrued professional liabilities of $250.2 million and $202.1 million, respectively, includes incurred but not reported loss reserves of $138.5 million and $128.1 million, respectively, and loss reserves for reported claims of $111.7 million and $74.0 million, respectively. Of the total liability, $37.9 million is classified as a current liability within accounts payable and accrued expenses in the Consolidated Balance Sheet. In addition, there is a corresponding insurance receivable of $18.9 million recorded as a component of other assets for certain professional liability claims that are covered by third-party insurance policies.

The activity related to the Company’s total accrued professional liability for the years ended December 31, 2017, 2016 and 2015 is as follows (in thousands):


	Years Ended December 31,
	2017			2016			2015
Balance at beginning of year	$	202,052		$	202,527		$	168,369
Assumed liabilities through acquisition		20,716			—			35,968
Provision (adjustment) for losses related to:
Current year		41,291			38,129			39,204
Prior years		9,983			(25,428	)		(25,797	)

Total provision for losses		51,274			12,701			13,407
Claim payments related to:
Current year		(712	)		(766	)		(1,382	)
Prior years		(23,143	)		(12,410	)		(13,835	)

Total payments		(23,855	)		(13,176	)		(15,217	)

Balance at end of year	$	250,187		$	202,052		$	202,527

The net increase in the Company’s total accrued professional liability for the year ended December 31, 2017 is primarily related to growth in the program from acquisitions as well as overall unfavorable trends in the Company’s claims experience. The net decrease in 2016 was primarily attributable to the overall favorable trends in the Company’s claims experience.