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Two studies shed light on malpractice costs

Physician Practice Advisor, May 17, 2006

Two recent studies on medical malpractice have raised new questions about the effects of malpractice litigation on healthcare costs.

The first study, published in the May/June issue of Health Affairs, contends that perceptions of a liability crisis are overblown. Based on data from 1970-2000, the study concludes that other expenses (e.g., office expenses, personnel costs, etc.) increased more rapidly and represented a greater share of total practice expenses than liability premiums. Immediately after the study was published, the American Medical Association (AMA) issued a press release calling the study flawed.

The second study, published in the May 11, 2006 issue of the New England Journal of Medicine, found that 40% of malpractice litigation claims were without merit, including those with no evidence of injury (3%) and claims that were not associated with medical errors (37%). However, the study found that costs associated with these claims represented only 13%-16% of the total medical torts costs, and the authors concluded that "moves to combat frivolous litigation will have a limited effect on total costs."

Click here to access the New England Journal of Medicine report. Click here to see the Health Affairs study.

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