Nothing happens in a vacuum. Maybe something else happened in Texas.
States with caps raised the premiums at a higher rate than states without caps.
http://www.weissratings.com/malpractice.asp
It still affects rates. Here is an independant study :
Physicians in states with caps on medical malpractice awards enjoy premiums that are 17.1% lower than those in states without caps, according to a new study from the chair of the health policy and management department at Emory University Rollins School of Public Health in Atlanta.
Author Kenneth E. Thorpe said caps at the federal level ultimately would mean lower insurance premiums, but he questioned whether that would accomplish the liability system goals. "The results suggest that capping awards may improve the profitability of malpractice carriers and reduce premiums," Thorpe said in the study. "Whether this is socially desirable or improves the goals of deterrence and compensation remains an open question."
The report, "The Medical Malpractice 'Crisis': Recent Trends And The Impact Of State Tort Reforms," is available online (content.healthaffairs.org/cgi/content/full/hlthaff.w4.20v1/DC1).
I trust advocates of public health, many who are not physicians but scientists and are not susceptible to lawsuits.
Quote:
...we are quick to use other people'smoney
Since the only "we" are doctors paying insurance premiums than we bear the ultimate cost. Taxpayers don't unless we seguaey into a more socialized model which i would not mind, (you also can't sue in that model yet these medical systems still outdo us in providing quality medical care (WHO ranking put Canada, cuba, many european countries such as france and germany etc. above the US) So I am not using other people's money, I see it in my yearly increases despite an impeccable track record.
From 1988 to 1998 malpractice insurance rates increased by a total of only 5.7% while medical costs increased by 74%. This was an enormous windfall for doctors. You can not expect to benefit from the effects of one side of a business cycle and be immune to the negative effects of the other.
Doctor's salaries account for less than 2 percent of the health costs you are talking about. The 74 % increase is the overall cost of medicine in the system. My salary has gone down yearly in the past five years of practice despite being so full I have closed my practice to new patients for three years. I'm still doing well, but I sure did not increase my salary by 74%! (I have 12,000 active patients.)You make it sound like we all had a 74% increase in salaries! By the way, 90% of what I take in every month goes to overhead according to my accountant. (Workman's comp insurance, unemployment insurance, malpractice, 401k for my employees, medical and dental, yearly raises, uniform stipends, CMEs for all the nurses and insurance personell, (which now total above 25 for us measly 4 doctor practice, a $150,000 dollar electronic medical record system purchase Omni-Doc, Intergy, $7,000 a month telephone system to help handle insurance and patient calls ) a $30,000 dollar a month rental.etc etc.
http://medrants.com/archives/2003/0...lpractice-laws/
Here is a more reliable independant source about the premiums.
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The Employment Policy Foundation (EPF) is a nonprofit, nonpartisan public policy research and educational foundation based in Washington, D.C. focused on workplace trends and policies. Its mission: to shape the direction and development of U.S. employment policies by providing policymakers, the media and the public with timely, high quality economic analysis and commentary. Federal and state executive branch officials and legislators, corporations, think tanks, universities, media and the public use EPF as a primary source of unbiased, reliable data, research and knowledge on employment and labor issues.
Rising Verdicts and Increasing Cost of Discovery Forces Rate Increases
Doctors, nurses and hospitals have been faced with skyrocketing malpractice insurance premiums in response to increasing claims. The rising litigation costs are reflected in malpractice insurance underwriting losses, which doubled from $4.1 billion in 1991 to $8.6 billion in 2001. This total includes amounts paid to plaintiffs and their attorneys, expenditures for processing and investigating claims, including the majority that are subsequently dropped or dismissed and expenditures to defend litigated claims. The study found that as the number of claims increased, so too have jury awards. Between 1995 and 2001, median jury awards in medical malpractice cases doubled from $500,000 to $1,000,000 for the typical case with the maximum annual claim award reported nationwide increasing from $5.3 to $20.7 million over the same period.
Malpractice insurers paid out $1.53 in claims settlements and claims adjustment and defense expenses for every dollar that they collected in premiums. In 2001, the gap between premiums collected and underwriting losses amounted to $4,033 per physician, assuming that all 744,000 full-time physicians in the U.S. were covered.
Most Litigation Costs Do Not Benefit Injured Patients
EPF’s analysis found that the malpractice litigation system is a highly inefficient method for identifying and correcting medical errors. Plaintiffs eventually receive only 38 percent of the total dollars that flow through the malpractice litigation system. The majority - 62 percent - compensates the plaintiff?s lawyers and expert witnesses and the insurer?s claims adjustment, cost of investigating claims and defending claims made against insured physicians and hospitals.
Caps on Non-Economic Damage Awards Are Effective
The study found that significant cost differences do exist between states with non-economic damage award caps and those states without limits. Between 1976 and 2000, malpractice insurance premiums nationwide increased 505 percent - equivalent to 7.8 percent annual premium growth compounded over 24 years. In California - which caps non-economic damage awards - malpractice premiums increased 167 percent?equivalent to a 4.2 percent annual growth rate. The resulting impact on premiums is very real. In 2001, the premium range for obstetricians was $143,000 to $203,000 per physician in Florida compared to $23,000 to $72,000 in California. The pattern was similar for surgeons - $63,000 to $159,000 in Florida compared to $14,000 to $42,000 in California.
Indirect Costs Result from ?Defensive? Medicine
Faced with the prospect of litigation, the study found many doctors and hospitals practiced “defensive” medicine. This practice artificially inflates EPF’s analysis found that controlling excesses in the malpractice litigation system could reduce current health care costs by 5 to 9 percent without sacraficing quality of care. The dollar impact on annual medical expenditures is large - up to $68.8 billion.
your source says a single digit malpractive premium percentage raise, the above source says 505% increase within almost the same time period except it starts in the late seventies. The obstetrician's premium in Florida which went up from $143,000 to over $200,000 three years ago would not call that an 7.4% increase.
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That is a good example of the type of statistics the AMA loves. It is completely meaningless. How long does a case "pend"? A year? Two years? Ten years?
Because the lawyers drag it out that way. Victims are told to wait until the very last day of the statute of limitations ( which is two years) in hopes the memory of the incident will be a fog and this will cloud memory of critical events and puts doctors at great disadvantage. And the draggingit out, its the lawyers, not doctors. we are generally want things to get done and over with.
I would be very surprised if the number of lawsuits had no relationship to competence. I'm sure the relationship is not absolute, there are undoubtedly other factors. But when those factors are normallized, though there will be randomness, there will also be a positive correlation.
It's because this is what the lawyers want you to believe. Thus, more and more doctors are giving up treating risky patients so their "numbers" can look good both in outcomes and lawsuits.
Instead of listing to media rhetoric, this is what I have seen on the front lines. When we serve our 2 year tenures as chief of medicine, we are privey to every lawsuit out there since the Chief of Medicine and Surgery get dragged in indirectly as representatives of the hospital and doctor. (This is due to laws of statistical averaging , the most popular and sought after doctor have more patients due to their popularity and higher expectations of perfection which translates to more lawsuits.) Every, and I mean every professor of medicine, both associate and tenured, at both Emory and MCG, the two main teaching hospitals in Georgia, has been sued at least once. Most if not all, multiple times. Especially the ones I consider outstanding. I have a hard time believing the number of increased lawsuits suggest our medical training has diminished in quality over the last 20 years.
The best way to reduce "frivolous" (not every failed suit is frivolous) claims is to reduce grounds for non-frivolous claim.
Exactly why some believe capping emotional pain and suffering will do it. Cases are bought to court when no physical disability or injury has happened, the non economic damages is the lotto ticket. Case in point, a woman sues a dermatologist in Tampa because a shave biopsey that removed a stage II melanomaleft a small scar on her scapula. She sued him for 1.2 million becaue of emotional pain and suffering despite being forwarned about the possibility of scarring.
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