Hospitals are losing the chance to save huge sums of money by failing to examine sufficiently their risk management techniques , according to Marsh.

The broker is urging healthcare organisations to meet the challenges of the rapidly changing environment and address the spiralling costs of insurance and medical malpractice claims.

Robert Wendin, managing director of Marsh's European healthcare practice, said: “Properly implemented risk management solutions will not only improve patient safety but can also quickly make a material difference to a hospital's finances and provide a significant return on investment.

“Typically, risk management efforts are associated with reducing insurance costs. However, the actual objective is to reduce what is called the ‘Total Cost of Risk' (TCOR), not just insurance premiums.”

Wendin will address the 21st European Association of Hospital Managers Conference (EAHM) in Dublin later this month on how to achieve results-focused risk management with a view to reducing costs of risk via patient safety.