Martin Kane Kuper
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Martin Kane Kuper
Consultation is Free
1.877.NJLAW4U
(732-214-1800)
Legal and Medical News Blog

The State of Medical Malpractice – Part 1, an Overview

January 20th, 2014 | Author: | Category: medical malpractice

There are many ways to measure the state of medical malpractice in America.   Claims and rates are declining, but are lawsuits against physicians actually tapering off?   Not really.   This is a brief overview of the changing landscape:

–             Payouts from medical malpractice claims in 2012 totaled $3.6 billion – a 3.4% drop from the previous year.   56.7% of medical malpractice insurance rates were flat in 2013; 28.8% decreased, and 13.7% increased.   The drop in premiums continues a 6-year trend;

–             The average amount to defend a claim has been rising.   It was $343,038 from 2007-2011.   65% of claims are dropped, withdrawn or settled, while 24% of cases are settled.   Only 7% of cases reach a verdict, and of those, the defendants (doctors) win in 88% of the cases that reach a verdict;

–             There are patchwork laws regarding med mal: 29 states have implemented caps on economic or noneconomic damages; 16 states limit contingent attorney’s fees; 31 states have rules involving periodic payments of damages; 37 states have ‘sorry’ laws or disclosure and early offer provisions; and every state has implemented a statute of limitations.

The frequency of lawsuits has fallen by 40%, but the rising yearly costs are a concern.   Loss prevention and risk analysis are playing a more prominent role in hospitals and large medical practices – further reducing incidents and resultant suits.   While observers generally believe the situation has improved for physicians; there is cause for concern over medical consolidation and the ramifications of the Affordable Care Act.   Only time will tell how those will impact the medical malpractice landscape.