Ted Frank has a great piece on how the candidates answered questions about medical malpractice at the debate – Medmal reform at the debate
He includes this great quote, which he originally wrote on Point of Law –
What the CBO says is that, assuming medical malpractice expenses are 2%, reducing those expenses 25% will, as a matter of simple arithmetic, reduce total health care expenses by 0.5%. But, as Dr. Chusid acknowledges, that 2% assumption for medical malpractice expense is a great underestimate. There’s more than just insurance premiums: there’s the billions spent on inefficient defensive medicine, on hospital in-house lawyers, on time doctors spend with lawyers instead of with patients, on time doctors spend papering the record to protect themselves in event of suit, and on self-insurance–many hospitals don’t use a middleman insurance company. And for a number of disciplines, the malpractice insurance rate is unquestionably higher than 2%–the average OB/GYN pays a quarter of her net income in premiums.
Reread that paragraph. These are words that lawyers deny. These are important words. Read them again. Then remember that Kerry/Edwards continue to deny the problem. On this issue, they are completely wrong.
Related posts:
Related posts brought to you by Yet Another Related Posts Plugin.
21 Responses to Overlawyered on medical malpractice – the debate
Machi
October 11th, 2004 at 12:41 pm
Say what? I reread those words and I see Frank twisting the statement that medmal is less than 2% of ALL HEALTH CARE COSTS into a refutation of the straw statement that physician’s insurance rates are 2% of net income. (!?!)
Maybe this site will offer a clearer view of the facts: http://www.citizen.org/pressroom/release.cfm?ID=1805
swift
October 11th, 2004 at 1:07 pm
I’m with Machi. Frank’s comment makes no sense.
Aaron
October 11th, 2004 at 1:41 pm
What the CBO implicitly recognizes, and what you are stubbornly refusing to acknowledge, is the fact that the present “tort reform” measures won’t stop or deter even one “frivolous suit” (to the extent that any such suits remain), as they are all aimed at limiting the recovery for the most severly injured patients in the most meritorious cases.
I’m still waiting for one of you to describe how you are wasting patient dollars, and convincing insurance companies to pay for medically unnecessary tests and procedures, as opposed to pointing to mything “other doctors” who engage in such “defensive” practice.
Also, was this post by the same host who yawned at the notion of saving 10 – 20% of health care costs by eliminating waste?
Aaron
October 11th, 2004 at 1:43 pm
Machi, your comment is a bit like suggesting, “I don’t understand how they can say that inflation is under four percent, when gas prices went up by 25%.” It’s self-evident, isn’t it? More goes into health care costs than physician salaries.
Anona Mouse
October 11th, 2004 at 3:51 pm
“…present ‘tort reform’ measures won’t stop or deter even one ‘frivolous suit’ …, as they are all aimed at limiting the recovery for the most severly injured patients in the most meritorious cases…”
Which is a deliberate and transparent lie. Most of the tort reform measures limit non-economic damages. That is, damages that do not “serve to make the plaintiff whole” by covering actual legal expenses, lost abilities, ongoing expenses, neglect of dependents, and so forth. Those losses are fully quantifiable and can be assigned rather accurate dollar values. (And let me head off the sophistry on the tip of your forked tongue about how activities such as not seeing your daughter’s piano recital can’t be assigned a dollar value. You simply have to pay a bunch of parents to avoid such an activity. The minimum amount it takes to get half of them to avoid it is the activity’s fair market value. I can guarantee you it is a noticeable chunk of change, but it is _NOT_ the $25,000 a pop that the the tort liars, er, lawyers would have us believe.)
Moreover, a fundamental goal of American justice is that the innocent are never punished on purpose. Anyone who thinks that some guilty must be punished extra to make up for the ones that got away is an unAmerican traitor. And that language is not hyperbole: the tort lawyers are murdering and maiming good people every day because doctors cannot afford to help them. It’s our wives and sisters ending up in the ER with an obstructed labor because there were no obstetricians to keep it from turning bad in the first place, and I think they are meritorious of fair treatement too.
Evan
October 12th, 2004 at 2:39 am
This discussion is going on as if there’s no empirical data.
There are states that have caps.
Do those states have less healthcare costs?
If yes, then they work. If no, then they don’t.
Seems very easy to end the debate if you want to.
Aaron
October 12th, 2004 at 9:49 am
Anonymous coward – no wonder you are afraid to stand behind your words. Obviously damages caps are directed at meritorious cases – the most meritorious, with the most severely wounded victims. Obviously, the notion of limiting attorney fees, also, has the greatest impact with the most severe, most meritorious cases.
Is this brain-dead nonsense the best “response” you guys can muster too the hard facts?
Evan, Michigan has long had damages caps. It does not enjoy lower health care costs. It still has some of the nation’s highest insurance premiums for OB/GYN’s, internists and general surgeons.
But don’t bother trying to reach these guys with facts. They’re apparently not interested.
MJL
October 12th, 2004 at 12:12 pm
Hey Aaron, here’s how defenive medicine works.
I’m an OB/GYN. I see an 18 year with a lump in her breast. It’s most likely a fibroadenoma which is benign. She has a 1 in 10,000 chance that it might be breast cancer, which at her age is usually an aggressive form.
I order an ultrasound which her insurance pays for because she has a lump. The radiologist reads it as a probable fibroadenoma cannot exclude breast cancer. She gets this result and wants the lump out. She is sent to the general surgeon who agrees that it is probably a fibroadenoma, but she wants it out. So its taken out and 9,999 times out of 10,000 its a fibroadenoma and we just wasted a huge amount of money.
But if she’s the 1 in 10,000 with breast cancer, and rather than do the above, we engage in watchful waiting and it spreads…well my ass is grass….so everyone gets the $100,000 work up rather than the 3 month $65 follow up visit.
In the real world we should all do the follow-up, but none of us wants to get sued even when we do the right thing.
And all of the above was paid for because it was indicated no matter how unlikely the risk of breast cancer is.
I have had at least 2 patients per year over the last 10 years who followed this scenerio and none of them choose watchful waiting even when they knew their risk of cancer was one in ten thousand
anon
October 12th, 2004 at 12:13 pm
Yeah, tort reform probably won’t save money.
After all, if you don’t practice, health care dollars aren’t spent.
Anona Mouse
October 12th, 2004 at 4:48 pm
“Anonymous coward – no wonder you are afraid to stand behind your words.”
A large fraction of my income is from government contracts. I or my colleagues could very well end up in front of a Congressional committee to justify our line items in the budget. It would not do to be seen in public telling the truth about lawyers.
“Obviously damages caps are directed at meritorious cases…”
Non-economic damages are not meritorious by definition. The jury comes up with them by rolling the dice.
It is also difficult to see what the trial lawyers’ obsession with jury selection has to do with merit. The most fair and accurate assessment of merit would be by highly-educated, intelligent professionals. Yet the torters bend over backwards to load juries with the dull and uneducated. I am reminded of the line ‘The more he talked of his honor, the faster we counted the spoons.’
“Obviously, the notion of limiting attorney fees, also, has the greatest impact with the most severe, most meritorious cases.”
Venture capitalists make a good living playing very long odds. If there were really that much merit lying around waiting to be plucked, the trial lawyers would have been disintermediated long ago.
Anona Mouse
October 12th, 2004 at 5:12 pm
And lest there be confusion, know that I am not opposed to tort lawyers in general, or even to taking cases on contingency. The former keep good men honest; the latter defend those who lack the capital to defend themselves.
What I oppose is the disconnection of risk from control. It is my right as a citizen and a patient to willingly _ASSUME_ risks. That is, not merely expose myself to risks, but to the bear the costs if they are realized. For without risks, there can be no rewards.
But the modern trial lawyer movement wants the opposite. Their sophistry is that risks are unnecessary, that if something bad happens, it must have been someone’s fault. Why? Because a practitioner who is unlucky will at most pay fair compensation, but a sinner can be tied to the stake and burned. For this they also need a juries who are willing to strike the match, hence the jury selection games.
Matthew Holt
October 12th, 2004 at 9:38 pm
Everyone reasonable can acknowlege that malpractice costs as a share of health care spending (as opposed to malpractice premiums as a share of some providers’ business expenses) are pretty low–well under 1% ($4billion is one oft quoted number). It’s the “defensive medicine” part that costs so much–6-8% or about $100 billion depending on which McLellan study you believe. But if we’re spending $100bn a year on defensive medicine, that’s $100bn that provders across the health care system are collecting.
Can anyone with a straight face tell me that if we got rid of all malpractice suits overnight, health care spending would go down $100 billion? Go ahead I dare you!
Evan
October 12th, 2004 at 11:11 pm
Nobody seems to want to address the fact that health care costs in states that have damage caps are simply not lower.
If “defensive medicine” is such a cost … then it’s still being practiced in the areas with the caps and hence, the only change that will take place is in insurance rates, and in fact we have a cap in Nevada and we’re still not seeing that.
So I’m agnostic about whether caps solve any problems, and as scientists, doctors as a group should be as well.
If someone has a political beef to say that caps are great because of this political reason or that, that’s fine, but where there is empirical evidence, we are obligated to either explain why it isn’t germane or deal with what it tells us.
From what I can tell the evidence so far is that caps do very little, if anything.
Aaron
October 13th, 2004 at 9:52 am
MJL, your allegorical “$100,000 workup” is fascinating, but how many “real world” dollars are we talking? (Or are you suggesting that the cost of “defensive medicine” as advanced by “tort reform” insurance lobbyists is premised upon the notion that any “defensive medicine” procedure costs $100,000.00?)
Matthew, granted it is easier to “make stuff up”, but how is that figure ascertained?
Evan, nobody here wants to address the fact they yawn at – that 10 – 20% of every health care dollar goes to pure bureaucratic waste. That’s about three times as much as the highest total cost for “malpractice”, including the made up “defenisve medicine” figure. The concern here is *not* about keeping health care costs down – it is about keeping physician income up.
Besides, if we “follow the bouncing ball” and accept the latest argument that 6-8% of health care costs are “defensive medicine”, we’re brought right back to the fact that damages caps are about recovery in the most meritorious cases with the most severely damaged victims of malpractice – and won’t have any effect on “frivolous” or unsubstantiated claims, and thus won’t have any impact on “defensive medicine”. But perhaps that’s okay, because as MJL noted, when he practices “defensive medicine” he gets paid.
MJL
October 13th, 2004 at 10:05 am
Actually Aarom, I only got paid for the 1st visit. So I got about $60 dollars. The ultrasound was about $300 for the tecnical component and whatever the radiologist charged. I got nothing from that.
The Surgeon got about $100 for an out-patient consult and then whatever he charged and collected for the surgery.
The hospital gets money for the use of the operating room and the anesthesia people bill as well. The actual total cost is about $10,000, of which I got $60.
MJL
October 13th, 2004 at 10:08 am
I think that even in states with caps defensive medicine exists because nobody wants to get sued. It is a significant emotional as well as finacial burden for the doctor who is sued. I don’t know how to get around that.
Procare
October 13th, 2004 at 10:51 am
Medical Lawsuit Reform At The Presidential Level
Medical lawsuit reform will be a big part of the health care discussion in tonight’s presidential debate. The Bush campaign has put this issue front and center and the presence of a trial lawyer on the Democratic ticket has made…
Evan
October 13th, 2004 at 11:37 am
MJL,
If, as you admit, defensive medicine exists because “nobody wants to get sued,” then you are admitting that caps don’t work.
As a practicing doctor, I’m not worried about getting sued at all … I am worried about keeping the patient.
If I’m a dick and I keep saying “no you don’t need that” in a way that puts the patient off, I’ll soon spend very lonely days. Now sometimes I can convince a patient that a test is not just not necessary but a bad idea … whole body CT scanning for example.
But the young girl with the breast lump … she’s gonna get tested by almost every doctor almost every time … not because they’re afraid of getting sued I hope, but because they’re afraid of her having breast cancer and not doing anything about it.
To tell her she doesn’t need a test that she wants in a case like that is radical indifference to the needs of your patient.
So lets stop the smoke and blather about the “costs of defensive medicine.”
The only thing caps can do is decrease the average award from jury trials and settlements (which by the way are cases where both sides agree that something indefensible took place).
So the purpose of the cap is to keep awards down for people with legitimate cases as determined by juries and insurance companies.
Woo hoo!
MJL
October 13th, 2004 at 11:47 am
Well Evan, if we give everybody a test that they want just because they want it, then what is the point of practicing medicine.
The point you hit on is whether that test is needed or not. In nearly every case with an 18 year old girl the test is not needed….reassurance and a re-visit are what is needed, but it’s very hard to convince them of that because of the pervasive fear of breast cancer in women.
I ask all my patients if they know what the most common cause of death is in women, and nearly all say it’s breast cancer when in fact it’s heart disease that kills more than 10 times as many women as breast cancer.
If the patient is 40 and presents with a new lump then mammography and ultrasound are the way to go as the risk for Breast cancer is now significantly higher than in an 18 year old. To imply that the u/s is truly the first step for an 18y/o I think is wrong.
Evan
October 13th, 2004 at 12:26 pm
MJL,
That’s really not the point of my argument.
My point is that (a) malpractice caps don’t decrease defensive medicine, and (b) in an environment where patients getting good service often determines how much business a provider does, a provider who routinely denies reasonable tests to patients that they themselves wish done will probably see fewer patients.
The science is all well and good. I agree with you on the science … but so what.
If the patient is understanding of the low risk and comfortable with it, then fine she doesn’t need a workup, but if she isn’t, then she’s going to get tested in our system in any state in the union. Not because of defensive medicine but because doctors want to stay in business.
medical malpractice guru
February 2nd, 2008 at 9:16 am
Medical Malpractice is a serious issue. I think this article provides some interesting insights regarding medical malpractice. If anyone is interested, I found a good website with tons of info on medical malpractice.