Malpractice Makes Perfect

Are limits on malpractice judgements really needed? There's plenty of data indicating the answer is, "no". The latest evidence comes from Texas which has already established award caps.

The team chose Texas because it is one of the few states with a publicly
available, comprehensive database of legal claims filed against physicians,
hospitals and other health care providers. Texas also is the second most
populous state and the third largest in health care spending.

Malpractice insurance premiums in Texas rose an average of 135 percent
from 1999 to 2002, prompting the state legislature to cap non-economic damages
in 2003.

Analyzing claims data from 1988 to 2002, the team found little change
in the number of claims filed or the total amount paid in damages, when adjusted
for population growth and inflation. The total number of claims per physician
actually declined from 1995 to 2002, and 80 percent of cases were resolved
without payment by the physicians or hospital.

When adjusted for Texas's economic growth, "total payouts fell by $6
million annually," the analysis found. The $515 million in malpractice payouts
in 2002 represented 0.6 percent of health care spending in Texas that
year.

I suspect the story is similar elsewhere.

Thanks to Paul Walman at The Gadflyer.