Preliminary information on increases in remuneration liabilities for patient insurance now available

Press release, 23 October 2014

This week, hospital districts completed their estimates of increases in remuneration liabilities for patient insurance. The number and severity of patient injuries affect remuneration liabilities, meaning that the amounts are not evenly distributed between hospital districts. According to the information currently available, the overall level of remuneration liabilities has increased to EUR 457 million. 

Last autumn, the Finnish Patient Insurance Centre detected significant risks of the remuneration liability level being insufficient. According to the calculations that have now been completed, the actual total level of remuneration liabilities is EUR 457 million, which represents an increase of EUR 198 million from the previous year. Of the total, EUR 185 million is attributed to hospital districts, and the rest is attributed to private providers of health-care services.

“Natural growth amounts to EUR 15 million, and the rest of the increase consists of expenses of a more unexpected nature. For example, as a result of the Disability Services Act, municipalities recover from the patient insurance system considerable expenses that they incur from assisted living and personal assistance services provided to severely injured patients,” says Simo Sarvamaa, Director of Actuarial Affairs at the Finnish Patient Insurance Centre.

At this point, the total is an estimate, as adjustments to provisions will continue to be made until the end of December. Any new notices of injury and injuries deemed eligible for compensation can still change the situation.

“Remuneration liabilities” refers to the total amount that must be reserved for future payment of patient injuries that have already occurred. For this reason, the level of remuneration liabilities is directly connected to the number and severity of patient injuries. According to the law, the remuneration liabilities must be based on the most realistic estimate of expenses to be paid in the future.

The increase in remuneration liabilities related to the financial statements for 2014 will materialise at the turn of the year when the final amount of remuneration liabilities will be confirmed and the Board of the Finnish Patient Insurance Centre approves the total.

Attachment: Questions and answers concerning remuneration liabilities for patient insurance 

Additional information  

  • Simo Sarvamaa, Director of Actuarial Affairs, tel. +358 40 450 4636
  • Asko Nio, Director, tel. +358 40 450 4614
  • Mika Sirviö, Mathematician, tel. +358 40 450 4769

The Finnish Patient Insurance Centre (PVK) handles all personal injuries that occur in conjunction with health care in accordance with the Patient Injuries Act. PVK promotes patient safety by carrying out research, making calculations and compiling statistics. Its members include all insurance companies granting patient insurance policies in Finland. Patients and health-care professionals have been protected by this statutory system since 1987.