Budgeted health spending increases despite declining health benefits assertions
Aon Health Risk Observatory Report Highlights Growing Costs and Trends in Italian Healthcare System
The Aon Health Risk Observatory report, analysing the Italian healthcare system from 2014 to 2023, has shed light on several key findings regarding the cost and types of health incidents, as well as the impact of COVID-19 on infection-related claims.
Cost Trends and Health Incident Types
Over the decade, there has been a notable increase in the costs associated with health claims in the Italian healthcare system. The most frequent health incidents generating claims are linked to hospitalization events, surgical procedures, and infections. Among these, surgical claims and related complications have historically accounted for a significant portion of total healthcare costs. There has also been a rising trend in chronic disease management claims, reflecting the growing burden of chronic conditions on the healthcare system.
Infections and COVID-19 Impact
Infection-related claims, which include hospital-acquired infections, were a considerable category but saw a marked change during the COVID-19 pandemic period. The COVID-19 pandemic led to a significant surge in infection-related claims starting in 2020, increasing not only the frequency of such claims but also the associated costs. This rise was attributed primarily to claims linked to COVID-19 infections contracted within healthcare settings, as well as complications arising from the virus.
Overall Implications
The report suggests that infection control remains a critical area for risk mitigation efforts, especially in light of lessons from COVID-19. Healthcare providers and insurers are encouraged to invest more in preventative measures, better patient safety protocols, and risk management strategies to contain costs and improve care outcomes.
The report also highlights the need to spread best practices in risk management within the healthcare world, as emphasised by Andrea Parisi, CEO Italy and Eastern Mediterranean of Aon.
Additional Findings
- The healthcare sector is currently facing a lack of economic and human resources, with services becoming more complex due to population aging, contributing to an increase in the cost of incidents.
- COVID has led to an increase in the number and cost of infection-related claims, with infections having the highest average reserved amount of over 180,000 euros.
- The average cost of a health incident has increased from 50,500 euros to 54,900 euros.
- The increase in the cost of health incidents is largely due to inflation.
- Conciliatory mediation in healthcare is a weak point in the process of managing disputes, as it does not achieve its main goal of finding an agreement between the parties and avoiding civil litigation in 92% of cases.
- The cost of insurance may not be as impacted by the implementation of these technologies due to less restrictive reserve fund requirements.
- Law 24/2017 in Italy encourages insurance companies to reduce premiums based on risk management activities and systemic incident analysis by individual facilities.
- These technologies are aimed at reducing the likelihood of health incidents and protecting doctors by following protocols.
- There has been a decrease in the number of disputes between 2014 and 2023, indicating a growth in out-of-court settlements.
- Technology, such as automated checklists in operating rooms, is reducing human errors in surgical procedures and promoting clinical risk assessment strategies.
- Surgical errors, diagnostic errors, and falls are the most common types of claims.
- Aon's Health Risk Observatory analysed 27,533 incidents handled directly by Aon.
- The total cost of health incidents in Italy from 2014 to 2023 has exceeded 1.5 billion euros.
- The Aon Health Risk Observatory serves as a benchmark for individual healthcare facilities to compare their safety performance and identify strengths and weaknesses.
- The rise in the cost of health incidents in the Italian healthcare system, as highlighted by the Aon Health Risk Observatory report, is not only due to inflation but also the surging trend in infection-related claims, particularly during the COVID-19 pandemic.
- As the report suggests, the healthcare sector must invest in preventative measures and risk management strategies to control costs and improve care outcomes, focusing on areas such as infection control, technology adoption, and clinical risk assessment strategies.
