Do Damages Caps Make Sense?

In Colorado, total damages in medical malpractice cases may not exceed one million dollars. Within that total cap, state law also places a $300,000 cap on non-economic damages, such as pain and suffering. About half the states in the nation have placed a cap on non-economic damages in civil litigation, with the caps ranging from $250,000 to $750,000. Most of these caps apply specifically to instances of medical malpractice.

The argument for capping damages is mainly an economic one; doctors argue that the potential for larger malpractice damage awards causes them to have to pay higher rates for malpractice insurance. Higher rates, in turn, will either cut into doctors' profits or be passed on to patients in the form of higher bills for office visits and procedures.

While capping damages may seem to make economic sense in the abstract, how do they stack up in individual cases where the cost inflicted by malpractice exceeds the statutory cap? Take, for instance, the recent case where around 21 patients at Rose Medical Center in Denver were exposed to hepatitis C at the hands of a surgical technician employed by the facility, who knew about her condition.

Hepatitis C is an incurable disease that can lead to cirrhosis of the liver or liver cancer. Certain drug therapies are effective at removing large quantities of the disease from the blood stream… at a cost of around $10,000 per treatment. While cost containment is a laudable objective for government policy, is it right for the state to set the price tag for being infected with a life-long, debilitating and potentially fatal condition? Does $300,000 sound like a fair exchange for the emotional pain and suffering these patients must endure, due to actions over which they had no control? Should the state enact a blanket cap without regard to individual circumstances, or should it be up to the judicial system to determine what is appropriate in a given instance?

Recent attempts to increase the $300,000 cap to $460,000 merely to adjust for inflation have been defeated in the legislature. The $300,000 non-economic and $1 million total damages caps still stand, although a judge does have discretion to exceed the total cap when it is shown that future medical expenses and lost wages will exceed the million dollar limit. For an individual infected with hepatitis C in the prime of life, it is more than conceivable that a million dollars will be inadequate to compensate for the loss.

Thank you for reading our blog. If you or someone you know has been injured due to medical malpractice, or someone you love has unfortunately died due to another's medical negligence, please contact us for assistance.