A Medical Malpractice Understanding to FASB ASU No.2010-24

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By Patrick Kitchen, Richard C. Frese | 03 October 2011

A new Accounting Standards Update (ASU) issued by the Financial Accounting Standards Board (FASB) has implications for healthcare entities. FASB ASU No. 2010-24 changes how healthcare entities present medical malpractice liabilities on financial statements. Healthcare CFOs may need the assistance of their auditors and actuaries to ensure that ASU 2010-24 is appropriately implemented.

Actuaries will need to estimate the recoverable asset, using methods such as historical loss experience, increased limits factor, and commercial premium.

This article was published in the October 2011 issue of hfm Magazine.

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