Malpractice Reforms Help the Insurance Industry But Harm Patients

Dan Frith
Dan Frith
Contributor
Posted by Dan FrithNovember 27, 2007 3:56 PM

We have now all heard the sad story about how doctors are getting out of medicine due to the high costs of medical malpractice insurance. I don't doubt that some doctors with atrocious track records of providing poor medical care pay hefty malpractice premiums. I also don't doubt that the insurance carriers and the executives who run them are making piles of money providing medical malpractice insurance coverage. But what happens to the patient? Well, here is what happened to a patient and his family in Texas...

Jose I. Lara, who was 81, died after post-operative complications to treat his colon cancer. His family believes a doctor wrongly prescribed intravenous fluids without giving a diuretic drug to help his kidneys handle the extra fluids. Jose Lara, in two weeks, increased his weight from 198 pounds to 287 pounds before he died of pneumonia.

For almost two years, Danny Lara, Jose's son, has been unable to find a lawyer willing to take his case. The lawyers say there's no money in it anymore. Texas's changes in medical malpractice law are being credited with helping to attract an influx of out-of-state doctors who enjoy increased protection from high jury awards and steep drops in insurance rates. Consumer groups, however, sharply criticize the state's $250,000 cap on pain-and-suffering awards as severely limiting legitimate claims.

"Medical malpractice cases have always been very difficult and expensive to pursue. The most recent changes make it impossible to litigate cases such as the one you describe," according to Dennis C. Peery, a past president of the San Antonio Trial Lawyers Association. Peery used to take four or five medical malpractice cases a year; however; he hasn't taken any in the last year because "it's not economically feasible. It's not unusual to go to trial and spend $100,000 of my own money on a case, mostly to pay experts. It's also not unusual for a case to last years."

It is widely accepted by analysts that the cost of medical malpractice cases accounts for approximately 1% of the total costs for the delivery of health care in the United States. Doesn't sound like a big problem to me....except for those unfortunate victims of medical negligence like Jose Lara!

For more information on this subject, please refer to the section on Medical Malpractice and Negligent Care.

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