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Malpractice costs
aren't a real crisis
Study: Claims don't lead to price increases
By Rocky Scott
DEMOCRAT
STAFF WRITER
A comprehensive study of
medical malpractice claims in Florida since 1990 shows no
sharp increase in lawsuits relative to population growth and a
modest increase in the size of settlements, according to two
Duke University professors.
"When we compared the
number of malpractice cases to the population in Florida,"
said Neil Vidmar, a professor at Duke's School of Law,
"there has been no (large) increase in medical malpractice
lawsuits in Florida."
Vidmar, who has a Ph.D. in
sociology, was joined by Dr. Paul Lee, a professor at Duke
University's School of Medicine and an attorney, in conducting
the study.
Vidmar said the data in the
study came from public records filed at the Florida Department
of Health since 1975, when a law was passed to require medical
malpractice insurance companies to file extensive information
annually on claims.
The medical malpractice
controversy has been a hardy perennial in the Legislature.
After intense lobbying by
insurers and doctors and a special session in 2003, lawmakers
passed a bill that placed caps on damage awards in medical
malpractice cases in hopes of stemming insurance rate increases.
And last November, voters
approved three constitutional amendments dealing with the issue.
Two of the amendments were
pushed by lawyers and the third by doctors. The doctors'
amendment limits fees of lawyers representing patients by
guaranteeing clients a greater share of damages.
The lawyers' amendments require
doctors and hospitals to make reports of their medical mistakes
public and to take away the licenses of doctors who commit three
incidents of medical malpractice.
Data supplied by the state
Office of Insurance Regulation shows in the past two years, the
top four medical malpractice insurance companies in Florida were
granted rate increases averaging 19.3 percent in 2004 and 9.3
percent for this year.
Since the mid-1970s, doctors and insurance companies have cited
increasing numbers of medical malpractice lawsuits and huge jury
awards as the reason for rapidly rising malpractice premiums.
Trial lawyers say the number of
lawsuits and the size of awards have not increased enough to
justify premium increases sought by insurers.
The Duke study shows that
average awards, in 2003 dollars, have increased from $176,603 in
1990 to $300,280 in 2003.
Vidmar, who has written several
studies of the civil litigation system, said public records show
no increase in medical malpractice claims from 1990 through
2003. He said the study reviewed data from 1975, but focused on
claims filed since 1990.
The study shows 2,776 total
medical malpractice claims filed in Florida in 1990. That figure
includes all claims that did not involve lawsuits and those in
which suits were filed.
Some medical malpractice claims
are settled before litigation begins.
The number peaked with 3,093
claims in 1996 and declined to 2,063 in 2003, the last year
surveyed in the study. In the same period, the number of doctors
in Florida increased from 32,425 in 1990 to 48,706 at the end of
2002, the study shows.
Median medical malpractice
claims payments in 1990 were $28,517 per claim and $150,00 per
claim in 2003. Vidmar said rising health-care costs and more
serious injuries resulting in larger claims or litigated
payments caused the increase in the claim total.
Finally, the report concludes
the "vast majority of million-dollar awards were settled
around the negotiation table rather than in the jury room."
Of the 831 million-dollar
awards reported since 1990, 63 were awarded by juries. The rest
occurred as settlements.
Of the 37 claims that received
awards of $5 million or more, only two claims went before a jury
- the rest were the result of settlements.
"At this stage," the
report says, "debate about the role of juries in so-called
'mega' awards is misplaced insofar as Florida is
concerned."
Vidmar's study comes on the
heels of a similar report from the University of Texas that was
released last week. Assembled by four law professors, the Texas
study mirrored the Duke report.
"We find no evidence of
the medical malpractice crisis that produced headlines over the
last several years and led to legal reform in Texas and other
states," the report said.
"The rapid changes in
insurance premiums that sparked the crisis appear to reflect
market dynamics, largely disconnected from claim outcomes,"
the report continued.
Charles Silver, a law professor
at the University of Texas Law school, said the report is based
on information provided by the Texas Department of Insurance.
Frank O'Neil, senior vice
president of investor relations and corporate communications at
Pronational Insurance Co. in Birmingham, Ala., said he had not
seen the Duke study and could not comment on it.
Pronational is one of the top
five medical malpractice insurers in Florida, according to
Office of Insurance Regulation records.
"Our results show just the
opposite," O'Neil said, referring to the conclusions in the
Texas and Duke studies. "I think what you are proving is we
have conflicting information."
Medical malpractice continues
to be a concern in the Legislature. Committees this week are
crafting bills to implement the constitutional amendments voters
passed. In addition, several lawmakers have filed placeholder
bills, which will deal with medical malpractice but have no
details yet.
The Duke study will be
published in the DePaul University Law Review, said a
spokeswoman for the Chicago university.
Contact
Rocky Scott at (850) 599-2176 or rscott@tallahassee.com.
Democrat reporter Nancy Cook Lauer also contributed to this
story.
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