Providers must plan for accrual of medical malpractice claims.
Because of the change in accounting regulations that requires accrual for certain medical malpractice claims, healthcare providers could soon be experiencing significant effects on their financial results. AICPA Statement Position 87-1, "Accounting for Asserted and Unasserted Medical Malpractice Claims of Health Care Providers and Related Issues," states that if healthcare providers have not transferred all risk for medical malpractice claims arising out of occurrences prior to the financial statement date to a third party, some accrual will be required. Providers need to prepare themselves for the financial problems that could arise from these reporting guidelines. Estimating the potential accrual amounts with advanced planning and extensive data gathering and analysis could lower a healthcare provider's financial risk.
D000066:Accounting / Q000592:standards*; D005376:Financial Management / Q000592:standards*; D005377:Financial Management, Hospital / Q000592:standards*; D007351:Insurance, Liability; D008318:Malpractice / Q000191:economics*; D014481:United States