Accrued Professional Liabilities

12 Months Ended

Dec. 31, 2018

Health Care Organizations [Abstract]

9. Accrued Professional Liabilities:

At December 31, 2018 and 2017, the Company’s total accrued professional liabilities of $244.0 million and $250.2 million, respectively, included incurred but not reported loss reserves of $139.1 million and $138.5 million, respectively, and loss reserves for reported claims of $104.9 million and $111.7 million, respectively. Of the total liability, $34.9 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 $16.7 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, 2018, 2017 and 2016 is as follows (in thousands):


	Years Ended December 31,
	2018			2017			2016
Balance at beginning of year	$	250,187		$	202,052		$	202,527
Assumed liabilities through acquisition		1,276			20,716			—
Provision (adjustment) for losses related to:
Current year		34,483			41,291			38,129
Prior years		10,299			9,983			(25,428	)

Total provision for losses		44,782			51,274			12,701
Claim payments related to:
Current year		(555	)		(712	)		(766	)
Prior years		(51,699	)		(23,143	)		(12,410	)

Total payments		(52,254	)		(23,855	)		(13,176	)

Balance at end of year	$	243,991		$	250,187		$	202,052

The net decrease in the Company’s total accrued professional liability for the year ended December 31, 2018 was primarily related to an increase in claims payments made in the current year, partially offset by overall unfavorable trends in the Company’s claims experience that impacted its provision for losses. The net increase in the Company’s total accrued professional liability for the year ended December 31, 2017 was primarily related to overall unfavorable trends in the Company’s claims experience that impacted its provision for losses and growth in the program from acquisitions.