When people talk about medical malpractice "reform," they are usually not talking about reducing the epidemic of medical errors in hospitals or instituting proven measures to actually reduce injuries, deaths, claims and lawsuits. No, they're usually talking about making it more difficult for patients injured by medical negligence, including catastrophically-injured children, to be compensated.
Despite the enormous hardships on innocent patients caused by these measures, or the fact that they shift compensation burdens onto others, there is an argument circulating that these measures are worth enacting because they will reduce the deficit.
Well, no they won't. In fact, they will likely increase it.
In October 2009, the Congressional Budget Office (CBO) presented an analysis (in the form of a 7-page letter to Senator Hatch) on "the effects of proposals to limit costs related to medical malpractice ('tort reform')," finding that "tort reform could affect costs for health care." CBO said that even if the country enacted the entire menu of extreme tort restrictions listed, including a Draconian $250,000 cap on non-economic damages, it could go no further than to find an extremely small percentage of health care savings, "about 0.5 percent or $11 billion a year at the current level -- far lower than advocates have estimated."
On March 10, 2011, CBO provided a new analysis of H.R. 5, a bill before Congress that is considering these measures. CBO now says that enacting H.R. 5 would reduce total health care spending even less -- 0.4 percent. Yet to find even this small amount, CBO ignored factors that would not only lower this figure but also likely increase the deficit.
For example, CBO acknowledges but does not consider in its cost calculations the fact that these kinds of extreme "tort reforms" would weaken the deterrent potential of the tort system, with accompanying increases in cost and physician utilization inherent in caring for newly maimed patients. CBO notes, "The system has twin objectives: deterring negligent behavior on the part of providers and compensating claimants for their losses ..." In fact, CBO wrote, "imposing limits on [the right to sue for damages] might be expected to have a negative impact on health outcomes." Yet it brushed aside the fiscal impact of this not because it is untrue, but because there are too few studies on the topic.
However, of the three studies that address the issue of mortality, CBO notes that one study finds such tort restrictions would lead to a .2 percent increase in the nation's overall death rate. If true, that would be more than 4,000 additional Americans killed every year by medical malpractice, let alone the hundreds of thousands of additional patients injured. How could this possibly be an acceptable trade-off?
Ten years ago, the Institute of Medicine put the costs of medical errors at between "$17 billion and $29 billion." Nowhere does CBO consider those costs, let alone the additional costs of caring for these newly-maimed patients as a result of new liability limits
There will be new burdens on Medicaid and Medicare, as well, none of which were considered by CBO. If someone is brain damaged, mutilated or rendered paraplegic as a result of the medical negligence but cannot obtain compensation from the culpable party through the tort system, he or she may be forced to turn elsewhere for compensation, like Medicaid and Medicare. None of these increased costs are considered.
What's more, whenever there is a successful medical malpractice lawsuit, Medicare and Medicaid can both claim either liens or subrogation interests in whatever the patient recovers, reimbursing the government for some of the patients' health care expenditures. Without the lawsuit, Medicare and Medicaid will lose funds that the government would otherwise be able to recoup. Again, none of these lost funds are factored in by the CBO.
After CBO issued its original October 9, 2009 letter, members of the CBO staff agreed to meet with me and a panel of experts to discuss these issues. Among the things I learned at this meeting were:
I have testified in Congress on this topic twice since January, and both times, I have tried to make clear that taking away the rights of the most seriously injured in our society has been and continues to be a failed public policy. This is the wrong way to respond to the important economic problems that face this country. Tort restrictions will add to the deficit and will reduce the financial incentive of institutions like hospitals and HMOs to operate safely, when our objectives should be deterring unsafe and substandard medical practices while safeguarding patients' rights. And effective insurance reforms are the only way to stop the insurance industry from abusing its enormous economic influence, which it uses to promote a legislative agenda that bilks taxpayers and severely hurts the American public.
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and reducing medical errors we need to look at other options. Fortunately President Obama understands this and has allocated $250,000,000 to be utilized by states in part to establish special health courts. We need to rally behind him in this courageous move as he is taking on the trial lawyers
After all, aren't they concerned about justice and their clients?
Why don't we have the government set the profit margin for what everyone receives for their services? Physicians, who freely contract with the government, and can always go private pay, don't seem to like that much, though, so I'm not sure why we would make it more widespread.
Razia
In most cases caps do not hurt patients, even when they are seriously injured. Caps only apply to non-economic (pain and suffering) damages. If they win their case, plaintiffs are still entitled to recover the full value of their economic damages (past and future medical costs, any future cost caused by the alleged malpractice - basically any cost a clever life-care planner can come up with). What hurts a legitimately injured patient is that their attorneys typically skim 40% of the award PLUS EXPENSES! Expenses are anything the attorney spends to win the case (expert witness fees, travel fees,other legal expenses etc). Imagine that the plaintiff is awarded a $350,000 cap for non-economic damages plus $5,000,000 needed to fund their future medical care and other legitimate expenses. The attorney gets $2,140,000 (40%) PLUS probably $50,000 in expenses. Net to injured patient = $3,160.000. Oh, and add to that the government or health care insurer who paid the original bills will come after the patient (not the attorney) with a lien on any proceeds (they want their money back). Sound like a racket to you? You bet it is and it's the patient and taxpayers who get screwed.
Yesterday I have encountered a case which will very likely result in a lawsuit. Today I requested additional consult ($300) and several additional tests ($247). This is of no benefit to the patient, but if the case does go to the court, it might help me.
I don't see a dime from this money. I'm doing it simply to minimize the chance of getting sued, and convicted. I did it because I know how the malpractice game is played by the doctors, lawyers, jurymen, and patients.
I can always prove in the court of law that the consult was necessary, even though I personally think it was not. You have to understand, Mrs. Doroshow, that there are many gray area in medicine. what one doctor's think is 'necessary', another might consider 'optional'. You can always find a second opinion which is 180 degree contradiction of the first. This is the nature of the profession.
There you have it. This is how lack of caps on nonmonetary damages, jury composed of people who don't understand medicine, lawsuit-happy patients, expert-for-hire industry, add up together.
This is what I see in my field. No amount of malpractice lawyer propaganda will change that. Medical malpractice reform will help to control costs.
I am a pathologist, too.
When someone flies or prepares to fly an aircraft they refer to a checklist. Some medical practicioners are now beginning to use checklists. Without a checklist, the wrong kidney has been removed, wrong leg, and some other really simple to avoid incidents have happened which a checklist in earlier use would have avoided.
Also from flying there is often a red banner or ribbon labelled "remove before flight" attached to something or other. It would not be difficult to tie a ribbon to each item of size placed temporarily into an incision. Each ribbon would be an unwritten signal to "remove before closing". An op room nurse probably uses a checklist now for what goes in and what is removed, but it's always nice to have a backup system.
Why do these efforts need to be mutually exclusive? How about we enact tort reform AND efforts to reduce the incidence of medical errors.
First off- nobody is in charge of med mal deaths, nobody counts them. Who keeps track and reports med mal deaths? What is the phone number of the med mal death bureau? Yep, got another med mal death to report ! The plaintiffs bar hasnt found this guy yet. Think about it.
Re Health care saving due to med mal reform. They are separate issues. This is a diversionary argument. The real problem with the high cost of health care, wait ..., is the high cost of health care. It is a stand alone argument. Do not humor the Aetna, Blue cross lobbyists by honoring this stupidity. Huge monthly premiums for the honor of meeting a huge deductible for the privelege of coming up with the copay. When do they pay? What a racket. It is catastrope coverage, not health care.
There isno competition for the healthcare dollar. Each state has only a few companies due to protected borders and freedom from antitrust provided my McCarron- Ferguson, that actually prevented information sharing between insurance companies in the 40s. Without competition, would we be in that Ford F-150 or a shiney Model T ? Separate the arguments.
Healthcare is a joke, measured by full hospitals not empty ones! I had 7 stitches recently and a tetnus shot- Cost me $2219.00. Really? $2k paid by Us healthcare- has to be some fuzzy math someplace.
Jim O'HAre RPLU AIC AIS.
DIrector of Claims
Medicus Ins Co
Seriously I believe it is very difficult to get big money to move against malpractice. The sheer threat of malpractice suits, or failure to issue a policy can be nightmare for the well intentioned physician. Like any other profession there will be a few who do risky business and make lots of money for a short time..
You are spot on about outrageous expenses.
Pharmacys put together a $20/bottle substance to prevent premature births. A drug company patented it and charged $1500/dose. When the public found out lowered the dose price to $600. Was covered nationally about 2 weeks ago.
fact 2 in australia private ins costs only 165 bucks a month and the insurance cos make big profits charging this small amt. for public ins the cost is a payroll tax of 1.5% and our av mean pay is roughly 50k a year so the av guy pays only 750 bucks a year for public health ins
any relation between fact one and fact 2?
If doctors and hospitals want to shield themselves from medical malpractice, they can start enforcing the surgical checklist, which has been saving lives worldwide.
First, an article that appeared in JAMA in 2000, placing the medical community as the third leading cause of death in the U.S. See:
Is U.S. Health Really the Best in the World?
http://www.jhsph.edu/bin/s/k/2000_JAMA_Starfield.pdf
Then, we have a statistical review that places the medical community as the number one cause of death in the U.S. See:
Death By Medicine
http://www.whale.to/a/null9.html#ABSTRACT
Next, we have reports stating that when doctors go on strike, the death rate in the population stays the same or decreases. Of course, there could be reasons unrelated to poor healthcare. Here is a review. Draw your own conclusions:
http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6VBF-4TN2FGB-3&_user=10&_coverDate=12%2F31%2F2008&_rdoc=1&_fmt=high&_orig=gateway&_origin=gateway&_sort=d&_docanchor=&view=c&_searchStrId=1733294120&_rerunOrigin=google&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md5=104076c126abd5f7ba7cece6b7904222&searchtype=a
The above are just some of the reasons I favor primary illness prevention, examples of which can be found in “The Wellness Project.”
Roy Mankovitz, Director
http://www.MontecitoWellness.com
A research organization
Do you have stats on chemical substance abusers in the operating room? I had a monogamous relationship with an abuser at one time for a few months. I didn't know what those tubes were for in the fridge until late in the relationship with that drug induced manic-depressive.
The general public should not have to ride a gurney into an operating room of drug addicts any more than ride an airplane operated by one, or ride on a flight where a flight controller at some airport is drugged.
Who is offering to give these "innocent patients" their compensation before the lawyer gets involved. I'm unaware of many physicians or their insurers rushing out to pay folks when they're injured.
http://prescriptions.blogs.nytimes.com/2009/08/31/would-tort-reform-lower-health-care-costs/
Wow, now I know why she took the time to write the article.
Out of a 2 trillion dollar industry?
"Wow, now I know why she took the time to write the article."
Cause she got paid or needed the publicity?
To quote my article AGAIN:
"That puts litigation costs and malpractice insurance at 1 to 1.5 percent of total medical costs."
Get it? Trials included 1.5% of all costs max.
There's no "there" there... AKA big to-do about nothing.
I guess you have to read his book:
"Tom Baker, a professor of law and health sciences at the University of Pennsylvania School of Law and author of “The Medical Malpractice Myth,”
"I understand that you beleive them in toto, I do not."
More of those "unsubstantiated" numbers and their sources from the article:
" These data were the basis of the 1999 report from the Institute of Medicine, “To Err Is Human.”
"It was published in The Quarterly Journal of Economics by Stanford economist Daniel Kessler and Dr. Mark McClellan, who was head of the Centers for Medicare & Medicaid Services under President George W. Bush."
" Furthermore, the second study, published in 2002 in The Journal of Public Economics, found that much of the difference disappeared as managed care took hold in Florida in the 1990s."
So let's sum up:
You find that the author ( a professor of law and health sciences at the University of Pennsylvania School of Law) of a book entitled “The Medical Malpractice Myth,”
who uses figures from a top actuarial firm, a study by a Stanford economist and a MD who was the head of the CDC under Bush, and another study in the journal of Public Economics to be questionable and that he's using "absolutely no substantiation".
You are hilarious!
Have your ever given any thought to doing stand up?
What you intentionally leave out are the indirect costs, mostly of defensive medicine, which amount to about 30% of the total costs of health care !
I cry for you bloodsuckers losing a few billion.....
I have yet to see the people whining about tort reform mention anything about defensive medicine while they cry about insurance costs and jury awards.
You are really dense if you think some award caps are going to stop docs from doing CYA.
"I cry for you bloodsuckers losing a few billion..... "
Don't cry for me Argentina.
Btw, I work in the medical profession...for 27 years.