Report: N.Y. City Agencies Claim Costs Contrast

How the New York Police Department and the city's Health and Hospitals Corp. have managed claim-related costs can provide a window on how other agencies might cut similar costs, the Citizens Budget Commission watchdog organization said in a commentary.

CBC's Aug. 12 study expanded on initial findings the previous month by city Comptroller Scott Stringer of ClaimStat, a data-driven tool designed to drive down the cost of settlements and judgments by empowering city agencies to reduce claims through changes in training or resource delivery.

New York City has set aside $674 million in the fiscal 2015 for settlements and claims.

According to Stringer, settlements and judgments against NYPD in fiscal 2013 totaled $137.2 million, the highest of any city agency. The comptroller said HHC has driven down total claims against the agency by 18% since 2001, although some facilities, including Woodhull Hospital and Kings County Hospital, showed marked increases in claims in fiscal 2013, while Jacobi/Bronx Municipal, Harlem and Lincoln Hospitals all experienced declines in claims activity.

Stringer said HHC took responsibility for its malpractice costs, while the NYPD and other agencies continue to have their settlements paid from a central account outside their agency budgets.

"The contrasting tales of these two agencies highlight the usefulness of the comptroller's new tool and suggest the strategy taken with respect to HHC might be effective at other agencies," wrote CBC health policy associate Elizabeth Wyner. "Comptroller Stringer's recommendation that the city include the cost of settlements and judgments in agency budgets and that these costs become a more explicit part of each city commissioner's responsibility is worthy of further consideration."

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