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Malpractice payments increasing in size, but growing proportionately

Credentialing Resource Center Connection, June 2, 2005

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Medical malpractice payments grew by an average of four percent annually between 1991 and 2003, totaling a 52% increase, according to a recent study published online by the journal Health Affairs. The study, titled "The Growth of Physician Medical Malpractice Payments: Evidence from the National Practitioner Data Bank," found that while malpractice payments have increased in size, they have grown proportionately with healthcare spending.

The study concluded that the growth of malpractice payments is less than had previously been thought, citing "a preoccupation with data on judgments, extreme awards, or specific specialties results," as contributing to an incomplete understanding of the growth of physician malpractice payments.

The study also found that trial judgments account for just four percent of malpractice payments, while settlements account for 96%, and that states with caps on pain-and-suffering damages have an easier time attracting physicians to work there than states without them.

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