Development of an Inflation Sensitive Exposure Base for Hospital Professional Liability Insurance [Review]

I am especially sympathetic to the search for the "Holy Grail" which will prevent the next malpractice crisis. Glenn Evans and Stan Miyao have used a very logical approach to selecting an exposure base which will respond to inflation but seemed to conclude, without analysis, that hospital revenue and inflation bear a direct relationship with hospital malpractice loss costs. While I agree in general with their conclusions, I'll try to present some problems I see with the base and also comment on some problems I see with the paper.