The following graphs provide analysis using the Healthcare Insurance Reciprocal of Canada’s (HIROC) data, which was compiled from hospitals participating in the MOREOB Program. Each hospital entered the program independent of each other with start dates ranging from 2003 to 2008. 



Using their historical actuarial data for 39 hospitals (blue line), the following graph shows the likely ultimate results in litigation costs without MOREOB. The yellow line compares to the current incurred amounts (ex IBNR) and the grey line to likely ultimate MOREOB results. There was a 75% reduction in costs! These sites are still being monitored today and the reduction is being sustained.


HIROC data incurred costs




The following graph provides a trending analysis of incurred costs using HIROC’s data. Using polynomial trending, the average cost per claim incurred* for obstetrics labor and delivery was separated from those incurred within all other departments. The average cost per claim incurred within all other departments was compared as a polynomial trending curve and showed significant reduction (p-value <0.001) following the onset of the program.


HIROC 39 hospitals


*Incurred costs included payments for: the HIROC lawyer; the adjuster; expert opinion; claimant legal costs; and, the reserve in their Ultimate Probable Cost (UPC, likely to happen). Incurred costs did not include the incurred but not reported (IBNR) costs.



This graph suggests that after the completion of the MOREOB Program, one can expect a leveling out of the claims frequency. This is in complete contrast to the nearly continuous upward trend in the Non-MOREOB Birthing Units.

HIROC Claims Frequency