Published on HeraldNet on Monday, March 17, 2003


Debate over malpractice lawsuits is misdirected

Eric Zoeckler
Business Columnist



There is something strangely comforting in going to the doctor.

Whether for a medical emergency, testing and diagnosis or a periodic examination, whether the outcome provides solace or concern, most physicians offer competence, comfort and some feeling of hope that eventually all will be all right again.

They hide from us the challenges and concerns they face operating their essentially small businesses - the billing hassles, the cash flow troubles, the pitches from the pharmaceutical and medical supply vendors, and the record-keeping - so they can concentrate on patient needs.

This is why they organize into professional associations, some concentrating on medical specialties and others primarily to represent them on business matters that come before state and national law and policymaking bodies.

The doctor's principal lobbying organization, the American Medical Association, is urging Congress to approve legislation that would limit medical malpractice damage awards. It argues that physicians are victims of soaring malpractice insurance rate increases caused by a legal system skewed by greedy trial lawyers and plaintiffs seeking "jackpot justice," routinely pocketing million-dollar-plus awards.

By doing so, the association has committed a major misdiagnosis of the medical malpractice insurance increase that's pinching many of its member doctors.

Although medical malpractice insurance rates have jumped significantly in the last two years, affecting some specialists who feel they can no longer practice, analysis of federal data and insurance industry testimony shows conclusively that greedy lawyers and plaintiffs aren't to blame.

Instead, the failure of state governing boards to discipline a small minority of physicians responsible for the highest percentages of successful malpractice claims and investment losses of insurance carriers are behind this so-called crisis.

Even so, proposed malpractice tort reform that would limit damage awards to $250,000 is the hottest political issue currently aimed at fixing the nation's broken medical system, far ahead of prescription drug coverage for seniors or the Patients' Bill of Rights. President Bush weighed in on the subject in his State of the Union address ,saying, "No one has ever been healed by a frivolous lawsuit."

Consider these findings, readily available through basic Internet research, that indicate villains other than lawyer and lawsuits:

  • A minimum of 44,000 Americans die in hospitals each year because of preventable medical errors, according to the Institute of Medicine. That's close to the annual death totals for automobile accidents and breast cancer.

  • Only one in eight of these preventable medical errors results in a malpractice claim, according to findings of Harvard Medical researchers 12 years ago and backed by several state surveys throughout the 1990s.

  • Just 5 percent of doctors nationally were responsible for 54 percent of malpractice damage awards, including jury awards and out-of-court settlements, according to consumer group Public Citizens' analysis of the federal government's National Practitioner Data Base. Of these 2,774 doctors, only 16 percent were disciplined (fines, license suspension or revocation) by their state medical boards.

  • Malpractice damage awards have remained consistently steady since 1991, not skyrocketing as claimed by the AMA. The average (mean) award in 2001 was $135,941, up 8.7 percent from $125,000 in 2000. Over 10 years, malpractice awards have increased an average of 6.2 percent a year, close to the average annual medical inflation rate of 6.7 percent between 1990 and 2001 and far below medical inflation of about 14 percent annually the last two years.

    The International Risk Management Institute and J. Robert Hunter, noted actuary and insurance director for the Consumer Federation of America, agree on what's causing malpractice premium rate increases. In separate studies, they noted that premiums do not correlate with damage awards paid; instead, they remain flat when investment returns to insurance carriers are high and climb when the economy falters.

    Finally, any limit on malpractice awards will not decrease medical malpractice premium rates, according to testimony of insurance executives before Congress and several state legislatures.

    That means physicians will get no relief; injured patients will receive substantially lower damage awards; and poorly practicing physicians and private insurers will benefit greatly.

    It is a prescription that won't provide the cure that's needed.

    Write Eric Zoeckler at The Herald, P.O. Box 930, Everett, WA 98206 or e-mail mrscribe@aol.com.

    This story can be found at:
    http://www.heraldnet.com/Stories/03/3/17/16653170.cfm

    Copyright © 2003 The Daily Herald Co., Everett, Wash.   If you have questions or comments, please contact us at newmedia@heraldnet.com.




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