Doctor Malpractice - Don't Become Next Victim *
Due Diligence Checks

Between 44,000 and 98,000 people die in hospitals annually each year due to preventable medical errors, the Institute of Medicine found. A survey of doctors and other adults released in December 2002 in the New England Journal of Medicine found that more than 1/3 of the doctors said they or their family members had experienced medical errors, most leading to serious health consequences. The cost to society in terms of disability and health care costs, lost income, lost household production and the personal costs of care are estimated to be between $17 billion and $29 billion. In contrast, the medical liability system costs $6.7 billion annually, about what is spent on dog food each year.

The groups released a large amount of material and data aimed at debunking myths, including a comprehensive malpractice briefing book, Medical Misdiagnosis: Challenging the Malpractice Claims of the Doctors’ Lobby, that contains case studies of states that doctors have identified as having medical malpractice crises, including Mississippi, Nevada, Pennsylvania, West Virginia and Florida. The information shows that:

• There is no growth in the number of new medical malpractice claims. According to the National Association of Insurance Commissioners, the number of new medical malpractice claims declined by about four percent between 1995 and 2000. There were 90,212 claims filed in 1995; 84,741 in 1996; 85,613 in 1997; 86,211 in 1998; 89,311 in 1999; and 86,480 in 2000.

• While medical costs have increased by 113 percent since 1987, the amount spent on medical malpractice insurance has increased by just 52 percent over that time.

• Insurance companies are raising rates because of poor returns on their investments, not because of increased litigation or jury awards, according to J. Robert Hunter, director of insurance for the Consumer Federation of America. Recent premiums were artificially low.

• Malpractice insurance costs amount to only 3.2 percent of the average physician’s revenues.

• Few medical errors ever result in legal claims. Only one malpractice claim is made for every 7.6 hospital injuries, according to a Harvard study. Further, plaintiffs drop 10 times more claims than they pursue, according to Physician Insurer Association of America data.