In the recent issue of Plastic Surgery Practice, Gerald C. Canaan, W. Scott Johnson, and Karah L. Jones write about the increasingly abrasive medical litigation environment that is one of the main reasons behind the escalating healthcare costs.The authors cite very revealing statistics, including:

• In 2003, many states witnessed malpractice premiums rising by more than 25%.
• Among the highest premiums paid by internists in 2003 were $65,697 in Miami, $50,063 in Detroit, and $41,238 in Chicago. Other specialties received even bigger blows, particularly general surgery, obstetrics, and gynecology. In 2003, general surgeons in the Miami area were paying as much as $226,542 for malpractice insurance coverage, whereas obstetricians and gynecologists were paying close to $250,000.

Looks like it pays very well to be a malpractice lawyer:

• There are approximately 125,000 active lawsuits against physicians on any given day—a number almost twice as large as the number of medical students.
• One-third of board-certified plastic surgeons face a medical malpractice claim every year.
• The average jury award in medical malpractice cases increased from $347,134 in 1997 to $606,907 in 2004.
• The escalation in settlement amounts has mirrored that of jury awards—between 1997 and 2004, the average settlement increased from $212,861 to $311,704.
• Physicians face large legal fees to defend themselves against these claims. Even in cases where the claims were dropped or dismissed, costs to defendants averaged $18,774.
• In cases that went to trial and the defendant prevailed, the average cost for physicians jumped to $95,559.

Looking at these numbers, can anyone argue with the fact that tort reform should be high up on the new administration’s agenda as the need to restore sanity to the healthcare system becomes ever more urgent?

Filed under: Health Policy