Accrued Professional Liabilities

12 Months Ended

Dec. 31, 2021

Health Care Organizations [Abstract]

12. Accrued Professional Liabilities:

At December 31, 2021 and 2020, the Company’s total accrued professional liabilities of $308.8 million and $315.9 million, respectively, included incurred but not reported loss reserves of $211.2 million and $222.9 million, respectively, and loss reserves for reported claims of $97.6 million and $93.0 million, respectively. Of the total liability, $37.7 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 $58.1 million recorded as a component of other assets for certain professional liability claims that are covered by third-party insurance policies. These reserves include the accrued professional liabilities for the Company’s continuing operations as reflected in the table below as well as certain retained professional liabilities related to the Company’s former anesthesiology and radiology medical groups that were divested in 2020.

The activity related to the Company’s accrued professional liability for continuing operations, excluding the retained professional liabilities related to the Company’s former anesthesiology and radiology medical groups, for the years ended December 31, 2021, 2020, and 2019 is as follows (in thousands):


	Years Ended December 31,
	2021			2020			2019
Balance at beginning of year	$	174,803		$	151,397		$	128,799
Liabilities recognized, offset by insurance Receivable		(2,299	)		3,922			10,354
Provision (adjustment) for losses related to:
Current year		56,016			45,674			42,733
Prior years		(14,231	)		(1,551	)		(7,766	)
Total provision for losses		41,785			44,123			34,967
Claim payments related to:
Current year		(59	)		(59	)		(33	)
Prior years		(24,103	)		(24,580	)		(22,690	)
Total payments		(24,162	)		(24,639	)		(22,723	)
Balance at end of year	$	190,127		$	174,803		$	151,397

The net increases in the Company’s total accrued professional liability for the years ended December 31, 2021 and 2020 were primarily related to overall growth in the program and certain changes in the Company’s claims experience that impacted its provision for losses.