ort
reform," the Bush administration's answer to the problem of high
medical malpractice costs, makes sense from only one aspect: the
political. The genius of tort reform, which focuses on putting a cap on
the awards from malpractice suits, is that it offends only one big-money
lobbying group: trial lawyers, who are important financial supporters of
the Democratic Party. Meanwhile, it helps or holds harmless Republican
special interests in the insurance, drug and health care industries. The
only problem is that it hurts the hapless patients who suffer grievous
harm at the hands of incompetent doctors.
We hold no brief for the current medical liability system, which does
a poor job of compensating most victims of medical malpractice. An
authoritative study of thousands of patients in New York State found
that the vast majority who were harmed by medical errors or negligence
never filed suit, whereas the vast majority of those who did file suit
were not actually harmed by negligent doctors. Some studies suggest
that, once a suit is filed, the courts do a reasonably good job of
sorting out who deserves compensation, while other research has found
that juries are swayed more by the severity of a plaintiff's injuries
than by evidence of negligence. But in a medical system that is coming
under increased fire for failing to deliver consistent quality in
hospital care, it is clear that only a small number of people are being
compensated for malpractice.
The problem with the president's approach, which would limit
noneconomic damages to a paltry $250,000, is that it would punish many
of those most deserving of compensation. If there is a problem with
frivolous lawsuits, that is best addressed by raising the hurdles for
filing a malpractice suit, perhaps by requiring an expert judgment on
the merits of a case before it can proceed through the courts. But
surely $250,000 hardly makes up for the physical and emotional damage
done to people who have suffered total paralysis, permanent blindness or
severe brain injury because of medical errors. Instead, Congress ought
to consider requiring guidelines for judges and juries to help determine
what compensation is reasonable in a given circumstance. Similar
guidelines could help ensure that punitive damages are high enough to
deter bad conduct; $250,000 would hardly amount to a wrist slap.
Politicians endorsing tort reform say a crisis of escalating
malpractice insurance premiums is forcing doctors out of business. The
extent to which this is an actual problem is murky. Insurance companies
have substantially raised premiums for malpractice coverage for doctors
in high-risk specialties like obstetrics and neurosurgery in some
states, leading at least some doctors to curtail their services, retire
or move. The White House laments that patients in some areas are thus
forced to travel long distances to find, for example, obstetrical care.
But when the Government Accountability Office visited five of the
hardest hit states in 2003, it found only scattered problems and was
unable to document wide-scale lack of access to medical care.
Most states that are burdened with high premiums have already set
their own caps, generally at more reasonable levels than those proposed
by the president. It would seem more useful to consider making it harder
for insurance companies to gain rate increases. The best response, one
that would benefit the public in general, would be to weed out the small
number of negligent doctors responsible for generating most of the
malpractice awards.
None of the tort reform proposals deal with the underlying need to
identify harmed patients and provide them with fair, prompt
compensation. Experts have suggested a number of approaches, including
special health courts with judges trained to deal with malpractice
issues, required mediation, mandatory reporting of errors by doctors and
prompt offers of compensation. But there is a lot of uncertainty about
what would work best.
Although the administration has been sponsoring some projects to
reduce medical errors or speed the resolution of claims, these have
faded behind the full-court political press to impose "tort
reform." Instead of fixating on an idea that would do little to
solve anything but the health care industry's desire for fewer big court
awards, Congress should push for a wide range of demonstration projects
aimed at solving the malpractice problem by actually cutting down on
malpractice.