Medical Liability

At a time of mounting concerns about health care costs, America’s broken medical liability system stands as a major culprit - raising costs and hampering quality of care for millions. While many states have adopted successful reforms, sky-high medical liability costs remain a significant problem nationally. read more...

The costs of medical liability are exacerbated by the filing of meritless lawsuits. Further, healthcare costs continue to rise because of the practice of “defensive medicine.” In response to increasing medical liability risks, doctors are ordering unnecessary tests and procedures as a way to protect themselves from liability.

And it is not just the cost of healthcare that is affected by medical liability costs - healthcare quality is also impacted. The availability of some higher-risk medical specialties, such as OB-Gyn physicians, is becoming scarce as a result of high insurance premiums resulting from lawsuits.

While Congress has tried to pass meaningful medical liability reform in recent years, many states have successfully lowered their medical costs and increased the availability of care by passing medical liability reforms.

California was a pioneer when in 1975 it passed the Medical Injury Compensation Reform Act (MICRA), which placed a $250,000 cap on non-economic damages in medical malpractice lawsuits and limits on attorney contingency fees. Since its passage, claims in California are settled in one-third less time than in states without caps on non-economic damages. The trial bar unsuccessfully attempted to pass a ballot initiative to remove the caps in 2014.

Many states have passed reforms modeled after MICRA with excellent results. For example, when Texas was facing an extreme shortage of physicians, medical facilities, and soaring medical liability costs, it enacted sweeping medical liability reforms that placed a $250,000 limit on non-economic damages against doctors and healthcare providers and an overall cap of $500,000 against healthcare facilities. Since Texas passed their reforms, lawsuits against hospitals have decreased by more than two-thirds, and the state added more than 80 practicing obstetricians in one year.

Over 20 states have enacted some type of law placing limits on medical malpractice awards:

Alaska, Alabama, California, Colorado, Florida, Georgia, Illinois, Michigan, Missouri, Mississippi, Montana, North Carolina, New Hampshire, Nevada, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Texas, Utah, Virginia, Wisconsin, and West Virginia.

Research

101 Ways to Improve State Legal Systems: A User's Guide to Promoting Fair and Effective Civil Justice

September 10, 2015 | 101 Ways to Improve State Legal Systems offers some of the many options available to foster a sound legal system. It considers fair and effective measures to improve the litigation process, promote rational liability rules, and rein in excessive awards.

The ILR Research Review - Volume 2

May 18, 2015 | The ILR Research Review offers valuable insights from our preeminent experts and specialists on key topics addressed in the latest of ILR's research reports.

All Results for Medical Liability

In the News Today - April 27, 2016

April 27, 2016 | Insights

ILR-Funded Ethics & Compliance Report Highlighted: CGMA Magazine, a journal for certified public accountants, writes on the ILR-funded report from the Ethics and Compliance Initiative offering "five principles of high-quality ethics and compliance programs." Read More »

In the News Today - April 6, 2016

April 06, 2016 | Insights

A federal appeals court drastically slashed a $25.5 million punitive damage award for a woman who claimed a faulty furnace led to her carbon monoxide poisoning. Read More »

The Trial Lawyer Underground: Covertly Lobbying the Executive Branch

Author: Victor E. Schwartz and Cary Silverman, Shook, Hardy & Bacon L.L.P. | September 30, 2015 | Research

This report highlights examples of the quiet and effective influence the American Association for Justice, the organization that lobbies on behalf of the plaintiffs' bar, exerts within the Executive Branch. Read More »

101 Ways to Improve State Legal Systems: A User's Guide to Promoting Fair and Effective Civil Justice

Author: Victor E. Schwartz and Cary Silverman, Shook, Hardy & Bacon L.L.P. | September 10, 2015 | Research

101 Ways to Improve State Legal Systems offers some of the many options available to foster a sound legal system. It considers fair and effective measures to improve the litigation process, promote rational liability rules, and rein in excessive awards. Read More »

The ILR Research Review - Volume 2

May 18, 2015 | Research

The ILR Research Review offers valuable insights from our preeminent experts and specialists on key topics addressed in the latest of ILR's research reports. Read More »

Laboratories of Tort Law: A Three-Year Review of Key State Supreme Court Decisions

Author: Victor E. Schwartz & Cary Silverman, Shook, Hardy & Bacon LLP | December 04, 2014 | Research

This report highlights significant tort law decisions over the past three years that are examples of particularly sound or unsound rulings. Each analysis examines the tort law principles involved, whether the court followed or deviated from these principles, and the court's reasoning in reaching its decision. Read More »

In The News Today - November 6, 2014

November 06, 2014 | Insights

An op-ed in the Wall Street Journal by House Speaker John Boehner and Senate Minority Leader Mitch McConnell highlights "excessive regulations and frivolous lawsuits that are driving up costs for families and preventing the economy from growing" as one of the top priorities for reform under the newly elected Republican majority in the House and Senate. Read More »

Texas Legal Reforms to Play a Part in 'Ebola Lawsuits'?

October 27, 2014 | Insights

The Associated Press today writes about expected litigation from the family of Thomas Eric Duncan, the man who was initially misdiagnosed but then passed away from Ebola after returning from West Africa. Read More »

Judge Refuses to Toss $9 Billion Verdict in Pharmaceutical Bellwether Case

August 29, 2014 | Insights

In a case that sets the tone for future litigation regarding drugmaker liability, U.S. District Judge Rebecca Doherty in Lafayette, Louisiana rejected a bid by Takeda Pharmaceutical Co. and Eli Lilly & Co. to toss a $9 billion judgment against over claims that the companies did not properly disclose the cancer risks of their Actos medicine. Read More »

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