Sunday, June 20, 2004

Rising medical malpractice insurance costs
We have come to be a litigious society. Like so many other things which began as responses to legitimate needs, the right to seek redress and compensation through civil, rather than criminal courts, served a valid purpose. But, like so many other things which have gone down the same road in our culture -- rampant misuse, abuse and exploitation in the name of pure greed -- the litigation process now has aspects which do more than damage a single individual's or even a corporation's bank balance. One direct effect of soaring litigation rewards is to drive medical malpractice insurance rates up to the point where doctors are forced to do without it or simply opt out of treating some individuals.

It's hard to argue that someone who has been seriously injured or the family of someone who has died due to a doctor's error isn't due compensation, given that we as a society have long ago accepted the idea of medical malpractice. But the dollar value of a human life, if there even is such a thing, continues to be difficult to define or agree on. In sensational trials and settlements the huge amounts of money at stake take on lottery proportions, appealing to rich vs. poor or little guy vs. big guy views, and are seen by some as a way for the underdog to strike back and get rich quick rather than seeking just compensation. And while the successful litigant(s) in such a case may collect a substantial sum of money, the bulk (as much as two-thirds to three-quarters) goes to the trial lawyer's firm. Both may be satisfied with the result, but where do the costs of these proceedings actually come to rest? To be sure, the defendant's insurance company will pay, but will then attempt to recoup that money through higher rates. The cost to doctors of those higher rates is then passed on to their patients. And the beat goes on.

By Robert Parker at 10:04 AM | Permalink
Category: Health and Retirement Care | Comments (0)