The White House's proposals have already been met with opposition. Republicans and consumer groups have stated that Obama's plans at medical malpractice reform lack substance. Senate Minority Leader, Mitch McConnell, stated that Obama's proposals do not get rid of enough frivolous lawsuits on doctors and hospitals. The U.S. Chamber of Commerce, representing business interests, stated that the amount of money offered by the administration is insufficient to make any significant progress in medical malpractice reform.
Contrary to what most people believe, however, an article in The New York Times stated that the direct costs of medical malpractice suits, including jury awards and settlements, constitute only a small fraction of health care spending according to economists. In actuality, according to a Harvard economist, Amitabh Chandra, who conducted research on medical malpractice costs, noticed that doctors conducted a noticeable amount of wasteful treatment because doctors feared getting sued by their patients. Chandra found that as much as $60 billion annually or approximately three percent of overall medical spending was attributable to doctors requesting unnecessary treatments.
Additionally, although many people perceive that large medical malpractice settlements and jury awards are commonplace, this is not factually true. In reality, medical researchers have found that after reviewing patient records that numbered in the thousands, only two to three percent of incidents of medical negligence actually led to medical malpractice lawsuits. According to a member of The Robert Wood Johnson Foundation, only a small share of victims receive compensation for their medical injuries, and the award amounts vary widely, ranging from the minimal to the very high jury award amounts.
As the debate over medical malpractice reform continues, the laws regarding medical malpractice, including medical malpractice caps, may change over time. It is apparent though that high costs for medical care are not necessarily due to high medical malpractice jury awards. A combination of different factors is perpetuating high healthcare costs.
Our firm is always apprised of changes in medical malpractice laws both at the state and national levels. We have an in-depth understanding of medical malpractice laws, issues, and litigation. If you or someone you know is a victim of medical malpractice or medical negligence, contact us for assistance.
