The healthcare industry has recently seen an increase in merger and acquisition (M&A) activity. With the large amount of money involved in these transactions, obtaining an accurate actuarial estimate for medical malpractice exposure should be front of mind. In this article for the Healthcare Financial Management Association’s HFM magazine, Milliman’s Richard C. Frese discusses the many factors that organizations should consider during an M&A, including how to support an unbiased actuarial estimation, the experience of the actuary, the full picture of the organization’s malpractice coverage, the potential for future loss development, and frequency and severity trends.
Actuarial considerations of medical malpractice evaluations in M&As