The soft market, that’s what.
While I’m somewhat reluctant to cite bomb-thrower Robert Hunter of Americans for Insurance Reform, he does make a good point. AIR’s recent pronouncement that the med mal crisis appears to have abated in large part due to the underwriting cycle is correct.
My take is the med mal crisis is largely an invented one. Yes, it is a problem for specific specialties and in specific areas. But it is NOT due to large jury awards; it is a result of insurance cycles and pricing.
Oct
27
I would disagree somewhat. I think we have just accepted into pricing the cost of med mal. A recent report shows that nationally, hospitals spend $4,800 per bed on med mal. In Florida it is over $7,000. Another article shows a jury award of $250 million for a missed ER diagnosis of a stroke.
Talked at length yesterday with physician that just got out of a frivoulous lawsuit that he lost due to an imcompentent attorney. His comment…have them settle, I am not going to risk going to court.
We also see many physicians choosing to not carry med mal insurance therefore removing the target from their backs but exposing themselves to significant risk. Another indicator of the reality of med mal as an issue, we held a 4 hour seminar for physicinas on current issues impacting workers compensation. The most popular and lively topic: protecting yourself from medical malpractice. Clearly not a WC topic but one that is impacting the ability to present insured physicians to a payer.
While the insurance industry may think otherwise, this is a real problem for physician practices and somewhat of a cost driver for hospitals.
‘invented crisis’… if a $200,000 policy gives you $250,000 of coverage?
if insurance contracts and hospital privileges depend upon certain levels of coverage? If there is no ability to pass along increased costs to consumers?