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New Report Demonstrates That Following Guidelines Improves Clinical Practices, Reduces Liability Costs

MMI Companies Programs Make A Significant Impact On Risk Within Healthcare Organizations

DEERFIELD, Ill., June 24, 1998 -- Following all risk modification guidelines in three of the most costly and visible areas of healthcare liability led to substantially lower average dollar losses per medical malpractice claim than following no guidelines at all -- $2,834 versus $72,767, a 96 percent difference -- according to a report released today by MMI Companies, Inc. The report indicates that aggressive implementation of risk modification guidelines not only reduces the cost of claims but also enhances patient safety.

The new report is based on MMI's comprehensive data set, compiled since 1985 primarily from the Company's hospital clients. The report is the fourth in a series released by MMI as part of the Company's efforts to monitor and enhance the degree of patient safety within healthcare organizations. MMI, an international healthcare services company, maintains one of the largest national comparative databases of clinical practice, patient outcomes and medical malpractice claims data. Medical malpractice claims generally are the result of perceived poor patient outcomes and/or patient injury. MMI works with its healthcare clients to reduce patient injury through the consistent application of MMI's clinical risk modification programs.

"The findings from this report reinforce and support our philosophy that following a comprehensive set of guidelines, or a rules-based approach to managing risk, can improve clinical practice, leading to better patient outcomes and a substantial reduction in costs associated with liability claims," said Pam Lockowitz, president, MMI Risk Management Resources, Inc., the MMI subsidiary responsible for implementing and monitoring MMI's clinical risk modification programs.

MMI's clinical risk modification guidelines encompass a variety of clinical and administrative processes that are at work b
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Contact: Ellen Rostand
rostande@fleishman.com
314-982-9133
Fleishman-Hillard, Inc.
24-Jun-1998


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