To some health-reform observers, it's self-evident that malpractice-insurance premiums and "defensive medicine" are significant contributors to the out-of-control escalation in health costs in America over the last couple decades. But not to Tom Baker, a professor of law and health sciences at the University of Pennsylvania School of Law and author of “The Medical Malpractice Myth." Baker, as you may have guessed, believes the tort-reform-will-lower-costs arguments to be a myth, or "red herring," as he phrases it in this interview with the New York Times' excellent health blog Prescriptions. Here are some key figures Baker cites:
According to the actuarial consulting firm Towers Perrin, medical malpractice tort costs were $30.4 billion in 2007, the last year for which data are available. We have a more than a $2 trillion health care system. That puts litigation costs and malpractice insurance at 1 to 1.5 percent of total medical costs. That’s a rounding error. Liability isn’t even the tail on the cost dog. It’s the hair on the end of the tail.
Further, Baker says the number of malpractice lawsuits has essentially stayed the same since the '80s, while the number of doctor-patient encounters has risen extensively since then and costs have skyrocketed, further suggesting no cause-effect relationship between malpractice and health costs. (Baker also could've cited a recent study that revealed that malpractice premiums have plummeted to a 30-year low and claims are down 45 percent since 2000.) So why does the myth persist?
It makes sense to people intuitively — in part, because they’ve been told it so often. And it’s a convenient argument for those who want to derail the process. Maybe it’s a deep political game. Maybe they’re raising it to say, we’ll back off tort reform if you back off the public option.
ronlouks, 2 months ago | FlagYou cannot tell how much malpractice and "defensive medicine" costs our society, simply by adding malpractice insurance costs and litigation costs. That would be analogous to measuring the cost of a war by counting the shell casings on the battlefield. This mentality completely ignores the billions and billions of dollars that are spent on testing to "CYA", the tremendous infrastructure that has been put in place for "risk avoidance", JCAHO, NCQA & HEDIS measures, practice guidelines, etc. Studies that have been done comparing a state with tort reform to one without, are also based on a false premise, since physicians often train in one state & practice in another, plus all of the aforementioned influences are not really based on state, but rather national trends and norms. There have been studies of physician ordering habits that have placed estimates of all of this increasing costs by as much as 30%. I suspect that is rather high, but lets say it is half that. Why wouldn't we want to do something to reduce health care costs by 15%? Yes, malpractice costs and claims are down, but this is due to a lot of the above costly "prevention" measures, plus the fact that numerous states have instituted tort reform on their own.
As someone with an administrative as well as clinical background, I am very interested in quality measures. One "good" thing that has come from all of the excessive (often frivolous) lawsuits has been the greater attention to quality measures and better clinical documentation. You can even hear talks about the "six sigma" approach to health care at management seminars. I am all for improved quality of care with maximum efficiency.
What we need now is a tort system that allows for appropriate compensation to those damaged by negligence, not a system that settles almost every claim out of court to avoid a lengthy and expensive court battle. I believe that medicine is still more art than science. You can do everything "by the book" and still have a bad outcome. Is that malpractice? Right now that depends on what state you practice in. I seriously doubt that we will have any meaningful federal tort reform as long as the vast majority of our federal legislators are lawyers.
Category: malpractice concerns
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