¶ … rising cost of healthcare have many wondering what can be done to make healthcare affordable. Many believe that a prime source of the rising healthcare cost is the exorbitant amount of money that some have received in malpractice suits. Many experts contend there should be a limit or cap on the amount of money that people can receive in a malpractice suit. The purpose of this discussion is to explain if there should be a cap on malpractice awards.
Why Caps Should exists
The main reason why Caps should exist is associated with the cost of malpractice insurance for doctors. In recent years, many doctors have been forced to stop practicing medicine because of the high cost of malpractice insurance. According to an article entitled "The Doctors' Big Squeeze: Huge Increases in Medical Malpractice Insurance Rates Are Driving Doctors out of Business. What's the Answer" caps on malpractice awards will be the only way to reduce the cost of malpractice insurance. The article explains that many doctors are practicing without malpractice insurance because they cannot afford the premiums. This is a potentially dangerous situation because if they are sued it will be difficult for a patient to collect any amount of money and in some cases, qualified physicians have been forced to stop practicing medicine.
The article explains that when the St. Paul insurance company decided it would no longer cover medical malpractice because of the huge awards that were being awarded, it caused an increase in the cost of malpractice insurance for doctors. According to the article 'Insurers insist that their greatest burden is the hefty awards that juries are increasingly giving to plaintiffs. Higher jury awards contributed to a 33% jump in claims paid by insurers from 2000 to 2001 alone. "We actually don't really lose that many cases when we come to trial," says Smarr of the Physicians Insurers Association ... In fact, 70% of the claims filed against a doctor either wind up in no payment at all, or the cases are dismissed entirely ... The trouble is the size of the awards, says Smarr, which have been growing "by about 7% for the last 10 years. And that's about 3% more than the rate of inflation (Boulard)."
Indeed the award amounts that some are receiving from malpractice suits have had an adverse affect on many. Another article explains that many insurance companies simply settle outside of court because they do not want to take the chance of going to trial and a jury awarding a large amount of money (Trussell). The author explains that lawyers are also to blame because "In many states, the trial lawyers have seen to it that there is no cap on the amount of punitive and "pain and suffering" damages a softhearted jury may award a plaintiff. In the past eight years, the average jury award has tripled in medical malpractice cases. In product liability cases, it has quadrupled. That's why insurance companies try to settle out of court (Trussell)."
The problems associated with malpractice awards came to the forefront in 2002 when a group of 60 specialists at the University Medical Center in Las Vegas refused to work because of the high cost of malpractice insurance. Their actions caused the hospitals emergency room to shut down (Boulard). This gave Nevada and the nation a glimpse of the public health crisis that could ensue if caps are not placed on Malpractice Awards. In the case of Las Vegas, legislatures came together and placed a $350,000 cap on the amount of money that a patient could receive as a non-economic award in a malpractice case (Boulard). However, lawmakers did attach to exceptions to the bill including "one involving cases where there is "gross malpractice." The other where there is "clear and convincing" evidence that an award should exceed the $350,000 cap (Boulard)."
The physicians that suffer the most from malpractice awards and the subsequent increase in malpractice insurance are those in high risks specialties such as orthopedic surgeons, emergency medicine doctors, and obstetrician-gynecologists (Ramstack). An article found in the Washington Times explains the plight of one obstetrician in West Virginia. The doctor explained the he is paying out in malpractice insurance, the same amount that he is making as an obstetrician. Another physician stated the following concerning malpractice awards "We are currently being sued out of existence," Dr. VanDerVeer said. "People have to choose whether they want these lawyers to make gazillions of dollars in pain and suffering awards or whether they want health care (Hurt)."
Inevitably,...
..bad investment choices, in addition to the underwriting cycle, have led to dwindling profits for insurers, who then try to recoup their losses through over-priced insurance products. Lawyers and consumer groups generally support efforts to reform the insurance industry in order to rein in premiums." (Cohen, 2005) The work of Miller (2003) entitled: "Liability for Medical Malpractice: Issues and Evidence" states that over the past "...several years" witnessed has been an
Medical Malpractice/Frivolous Lawsuits The Effect of Medical Malpractice/Frivolous Lawsuits on Healthcare The costs of medical malpractice insurance are rising yearly. These expenses affect medical practitioners in a number of ways, including such things as from where they choose to practice medicine, to the number of tests and types and medical procedures ordered. Many doctors in various specialties are aware that the laws and regulations that govern malpractice insurance vary from state to
C. revealed some factors affecting healthcare costs. This includes (Francis, 2003). Drug companies who are spending roughly as much on advertising and promotion - $20 billion a year - as they do on research and development of new drugs. American pharmaceutical firms employing one sales person for every physician in the country. They also pick up the tab for doctors to attend seminars promoting their products. New technology - from diagnostic devices to
The plaintiff, however, has a burden of proof prior to any other technical issues. In addition, because of the nature of the allegation, and the fact that normal members of a jury or judge cannot be expected to understand complext medical terms and procedures, expert witnesses are typically called -- usually for both sides (Uribe, 1999). In the United States, there have been several cases that have set international precedence
Rising Cost of Medical Malpractice: The Impact of Medical Insurance on Patients and Physicians The purpose of this study is to examine the extent to which rising medical malpractice premiums have affected the quality care provided by physicians. Research suggests that a majority of specialty practitioners are pulling out of practice because of rapidly rising medical insurance premiums. A majority of physicians are unable to pay premiums that are rising upwards
Legal Research and Application Should there be caps on legal awards against organizations or practitioners? What are the pros and cons of limiting civil monetary awards? There are a number of tort reforms that are being promoted among the fifty states regarding caps on punitive damages. The purpose of these caps is to ensure that "defendants will be held liable for no more than their fair share of responsibility for a plaintiff's
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